TOR restructuring: Energy Ministry receiving proposals from strategic investors

Minister responsible for Public Enterprises, Mr Joseph Cudjoe, has disclosed a restructuring plan to revamp the Tema Oil Refinery (TOR).

Mr Joseph Cudjoe said that the Ministry of Energy was receiving proposals from potential strategic investors that would bring in the necessary funds and technologies which would help the Tema Oil Refinery to operate as expected.

Speaking in an interview with the Ghana News Agency, MrCudjoe said that the Ministry of Energy was counting on that window provided by the potential strategic investors to restructure the Tema Oil Refinery.

“At the moment, I know the Ministry of Energy is receiving proposals from potential strategic investors for the restructuring and so we are looking at that window where these strategic investors will bring in the necessary funds, the necessary technical technologies and so on for it to operate as expected…so that is the restructuring plan,” he said.

He, however, stated that even though Tema Oil Refinery was not functioning as it should, the government of Ghana would continue to commit resources to protect its assets.

He argued that the government was not wasting state resources to keep the TemaOil Refinery which had not been fit for purpose.

“When you have a building, dilapidated, sitting there and people are stealing furniture, glass louvres, will you put a security man and pay him even though the building is not bringing you rents? Will you do that? If you will do that, then you use the same to measure what is happening at the Tema Oil Refinery.

“Until you get the money to renovate it for it to earn the rent you want, will you abandon it? If no, then let’s be reasonable citizens and expect what is happening as a meantime while we look for a long-term solution,” he argued.

The Member of Parliament for Effia Constituency spoke about plans for defunct State-owned Enterprises, saying, “Defunct means they are not functioning and so we will dispose of them. We have a list of those defunct state companies.

“I have to work with the Finance Minister; that we want to go to Cabinet and seek Cabinet approval and then trigger disposing of those defunct companies,” he said.

Meanwhile The Chamber of Petroleum Consumers Ghana (COPEC) is demanding for accurate timelines as to when the rehabilitation of the Tema Oil Refinery will be completed as promised by government.

The Executive Secretary of COPEC, though elated about the President’s announcement, told Citi Business News there needs to be timelines as to when the project will be completed.

“We’ve said this time without number that you cannot be an oil producing country and crown your refinery the way we have done. The way forward is to get the refinery up and running. Get a portion of your oil entitlement to be refined locally so that there’s that petroleum security that also takes away the logistical cost of importing fuel from Europe. If you don’t do these things, your fuel prices would continue to be a cost rising thing that any time there’s an inconvenience geopolitically, your people will have to pay more.”

“So fixing the refinery is paramount. We are happy that he’s now indicating that there are plans to fix it. Timelines will need to be given so the people can at least hold authorities accountable for this.” 

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