FAQS

A Petroleum and Petrochemicals Hub is an area with a network of infrastructure for the processing of crude oil and raw natural gas into petroleum and petrochemical products for the purpose of trading, storage, transportation and distribution to third parties and for export.

The Hub will be located on a 20, 000-acre land in the Domunli Enclave in the Jomoro Municipality in the Western Region of Ghana.

Yes, the Hub is open to local, foreign, joint ventures and all legally and legitimate businesses globally.

The turnaround for potential return on investment is projected to be between 15 and 20 years.

The investor will run the project in perpetuity if it falls under the key infrastructure while the other ancillaries depends on the terms within the JVs between the state and the private sector.

The feedstock will be sourced from Ghana and several places within the sub-region and globally as well.

Yes. There is huge market in the sub-region due to the supply deficit of petroleum and petrochemical products. Africa depends on imports for more than 80% of its petroleum and petrochemical products. Given the operationalization of the African Continental Free Trade Area (AfCFTA) which makes Africa a single market concept, the demand will be expanded from the region to the entire African Continent.

Government will designate the entire hub area a free zones enclave, tax incentives for investors and developers, reliable and transparent legal framework, security and conducive business environment as well as the provision of basic infrastructure such as rail, roads, utilities, etc. that are required for the operationalization of the Hub.

The Corporation will implement the Artisans Registration and Hiring System (ARHS) and the Graduate Placement Programme (GPP) to create opportunities for Ghanaians to work in the Hub. In addition, through the operationalization of the Universal Qualification System, qualified local enterprises will get the opportunity to provide goods and services to the Hub.

Yes. However, this may be subject to Bank of Ghana regulations which thousands of multinationals operating in Ghana enjoy within the upstream petroleum, mining, telecommunications, manufacturing and financial services sectors.

Government will provide both economic and regulatory incentives to investors.

These include:

• Provision of serviced lands (road and railway network, utilities).
• Corporate tax exemptions and waivers on import duties and levies on machinery and equipment
• Losses carried forward for three years minimum.
• Constitutional guarantee
• Repatriation of profits and dividend
• Double Taxation Agreements (DTAs)
• Multilateral Investment Guarantee Agency (MIGA) membership
• Bilateral Investment Treaties (BITs)

The general corporate tax rate in Ghana is 25% except for the petroleum upstream and mining sectors that is 35%. However, the Hub is a free zone enclave hence, its corporate tax will be 15% after the ten-year tax holiday.

Ghana has a relatively matured and stable democracy and a competent legal system that protects investors. A change in government will not affect the status of investors or their investments. In addition, the PHDC is a creation of an Act which was passed by Parliament of Ghana and assented to by the President which gives the Hub a clear mandate to operate and develop.

Ghana is implementing several measures in energy efficiency, investment in renewable energy, sustainable mass transportation, aforestation, clean cooking technologies and fuels. According to the 2021 World Economic Forum’s Fostering Effective Transition report, Ghana has moved up the energy transition index rank from a 59.3% system performance in 2020 to 69.3% in 2021.