Gov’t Saves $56m From GNPC Building Cost Renegotiation

By Justice Dzido On Mar 23, 2018

Government has saved the nation some $56 million after it renegotiated the $76 million initial cost of the head Office Complex for the Ghana National Petroleum Company (GNPC) to $20 million.

Energy Minister, Boakye Agyarko made this known yesterday when Parliament approved the 2018 Programme of Activities for the company.

According to the Minister, Ghana as an emerging Oil producing country must pay particular attention to development and growth of its National Oil Company.

The Minister disclosed that Government has appointed a nomination independent company to manage Ghana’s Gas Accounting System since the sector will soon witness more entrants.

On the Exxon Mobil deal, Mr. Agyarko acknowledged that the previous administration initiated the process.

Speaking to the media after the approval, Mr. Agyarko explained that the current administration inherited a funding proposal which is expected to cost $ 76 million and has succeeded in scaling down the cost to $20 million.

“When we came in, there was a funding proposal on the table for a GNPC headquarters that was projected to cost US$76m, we thought it was a ridiculous amount and so GNPC was instructed to look at the project again.

“What we have been able to do, is to scale down the project and also commit US$20m to the project. Obviously at the end of the project we estimate US$20m” he stated.

According to Parliament’s Select Committee on Mines and Energy report on GNPC’s 2018 Programme of Activities, the firm will this year continue its effort at securing a permanent office.

The total estimated cost of the office which falls under GNPC’s non-petroleum capital projects is still being determined and will be made available after the detailed design work is completed.

GNPC required a total amount of $986.13 million for the implementation of its programmes of activities for 2018 however, an amount of $356. 43 million is expected to be received leaving a funding gap of $ 629.70 million.

By: Christian Kpesese/ thePublisher