PLANS are far advanced for the construction of a multi-million dollar fertiliser production plant at Nyankrom in the Shama Industrial Area of the Western Region, to produce fertiliser at relatively cheaper prices to boost agricultural activities in Ghana.
The plant, which will produce 1.1 million tonnes of fertiliser per annum, is to be built by technicians from India and is expected to be in operation in 2016, by which time gas from the country's oil and gas industry will be available in large quantities to power it.
To concretise outstanding issues relating to the establishment of the plant such as raising the requisite financing estimated at $1.1 billion, the share holding structure and management of the company to be established and the project designs, a high-powered delegation from India met with Vice-President John Mahama at the Castle, Osu in Accra yesterday.
The delegation, led by Dr. Sutanu Behuria, Indian Minister in charge of Chemicals and Fertilisers also included officials from that country's ministry of commerceand offiicials from Ghana's Ministry of Food and Agriculture and the Ministry of Energy.
Accroding to experts, fertiliser will be a strategic commodity in the next decade as the World Food Programme has called for an increase in world food production to 70 per cent. In that regard, the experts say there will be need for adequate fertilisers at affordable rates to farmers to ensure food security.
In his opening remarks, Kwesi Ahwoi, Minister of Food and Agriculture said a team from India was in the country in August last year to undertake due diligence on the proposed fertiliser plant, following which a committee comprising MOFA, Ministry of Energy and the Ghana National Petroleum Corporation was established to look at the feasibility.
"We have been engaging seriously in this, we have to follow up on the pre-feasibility that was submitted to us and fine-tune it," he said, adding, a Ghanaian delegation would visit India in February this year to firm up the deal, which is to begin in three years.
"We also need a loan for the project [1.1 billion dollars], we are looking whether the funds should come from India, the Ghana governemnt or a joint financing. We are also looking at the joint nature of the company that will be established becuase we see the people of Takoradi as equity shareholders in the project," Mr. Ahwoi told the Vice-President.
Mr. Armah Kofi Buah, Deputy Minister of Energy gave the assurance that the quantity of gas needed would be in place to power the plant as there would be a lot of gas development in Ghana in the coming years.
He stressed the need to acquire the site as quickly as possible to pave way for the necessary legal approval from Parliament to enable the project to begin in earnest.
On his part, Dr. Behuria said the Indian side was serious and keen about building the plant and stressed the need for the Ghanaian side to take into consideration the pricing of gas as well as it would also be critical to the project.
He said the project was important as it would spare the country the huge subsidies on fertiliser and bring about agricultural productivity.
Vice-President Mahama recalled that the idea for the establishment of a fertiliser plant was mooted when he visited India last year to attend a business conclave.
He noted that world food production would have to increase in the next 10 to 20 years, and the critical role of adequate and affordable fertilisers in this could not be overemphasised.
"It is always proper to engage in South-South cooperation in projects like this that will be beneficial to our countries," Mr. Mahama said.
He gave the assurance that the government remained committed to the project and looked forward to its realisation as one of the flagship projects in the nation's oil and gas industry.
Story: Office Of The Vice President
17/1/11
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