Ghana’s Petroleum Hub Development Corporation (PHDC) has outlined four distinct funding mechanisms to support the country’s 60 billion US dollar petroleum infrastructure project in the Western Region, addressing persistent questions about how the government will finance its portion of the massive undertaking.
The financing strategy aims to reduce pressure on the national budget while maintaining momentum on the project, which encompasses three refineries, petrochemical plants, storage facilities, tank farms, port infrastructure, and jetties across 20,000 acres in the Jomoro Municipal District. Private investors will construct the facilities themselves, while the government provides basic infrastructure including serviced lands, roads, and amenities.
According to information shared at the Africa Extractives Media Fellowships, Parliament will allocate annual funds through the national budget to support PHDC operations, planning, coordination, and early stage project development. The 2026 Budget presented by Finance Minister Dr. Cassiel Ato Forson in November 2025 contained no allocation for the corporation, though officials expressed optimism about future budget cycles.
The funding approach reflects concerns about strain on public finances at a time when competing sectors including health, education, and infrastructure demand increased resources. PHDC maintains that parliamentary allocations demonstrate government commitment despite tight fiscal constraints.
The Corporation can generate internal revenue through fees and charges backed by law, including rents, approval fees, and licenses. These earnings provide flexibility for operations without waiting for lengthy government procedures, though they become significant only after the hub attracts substantial commercial activity.
PHDC is authorized to take loans under strict financial management rules designed to prevent excessive borrowing that could worsen Ghana’s debt situation. The safeguards acknowledge that if the hub fails to attract projected investment levels, the government might need to support loan repayments, adding pressure to future budgets. Public debt remains a sensitive topic in Ghana following the country’s recent economic crisis.
Grants from other state agencies represent the fourth funding stream. The Unified Petroleum Price Fund (UPPF), managed by the National Petroleum Authority (NPA), provides support for specific activities. This shared support model spreads financial responsibility across the public sector, though it requires participating institutions to remain financially healthy for the hub to continue receiving assistance.
The National Petroleum Authority established the Unified Petroleum Price Fund under the National Petroleum Authority Act of 2005 to ensure petroleum products reach consumers regardless of location. The fund equalizes distribution costs across Ghana’s petroleum downstream industry.
Energy Minister John Abdulai Jinapor reaffirmed government commitment to the Petroleum Hub during an October 2025 visit to PHDC headquarters in Accra. The visit formed part of his familiarization tour of agencies under the ministry and provided an opportunity to reinforce the strategic importance of the initiative to Ghana’s energy future and economic transformation.
The project positions Ghana to address Africa’s growing fuel deficit. The continent currently consumes 3.5 million barrels per day of oil but produces only 1.83 million barrels per day through refinery throughput, creating a deficit of 1.67 million barrels per day. Africa imports the majority of petroleum products from Northwest Europe, which supplies approximately 56 percent of total West African demand.
Government signed a landmark 12 billion US dollar agreement with TCP UIC Consortium in August 2024 to commence first phase development. The consortium comprises Touchstone Capital Group Holdings Ltd, UIC Energy Ghana Ltd, China Wuhan Engineering Co Ltd, and China Construction Third Engineering Bureau Co Ltd.
Phase one includes a refinery with 300,000 barrels per day capacity to process crude domestically, storage tanks with three million cubic meters capacity, jetty and port infrastructure facilitating import and export activities, and ancillary infrastructure including pipelines, power plants, and product testing laboratories.
PHDC signed a Memorandum of Understanding with Egyptian companies Chemexa Petrochemical Trading and Afdat for International Trade and Investment in October 2025. The agreement provides a preliminary framework enabling both firms to participate by building storage tanks with cumulative capacity of seven million cubic meters.
Speaker of Parliament Alban Bagbin called on key state and private sector stakeholders to rally behind the project during a June 2025 strategic retreat between the Parliamentary Select Committee on Energy and PHDC. He emphasized that the corporation needs strong institutional support to effectively execute its mandate as lead developer of the transformative initiative.
Acting Chief Executive Officer Dr. Toni Aubynn told the June retreat the hub could transform Ghana’s role in Africa’s energy market. He cited global petroleum and petrochemical centers in Singapore and the Netherlands to highlight the project’s potential impact, noting Malaysia’s similar hub project created over 80,000 jobs in its first phase.
The blended funding approach helps prevent the project from becoming a heavy burden on the national budget, though it does not remove risks entirely. If managed well, the hub could eventually pay for itself, stimulate investment, create jobs, and boost export earnings. However, delays or cost overruns could create additional fiscal pressure at a time when the government works to stabilize the economy following a recent crisis.
The entire project, expected to be constructed in three phases between 2024 and 2036, is estimated to cost 60 billion US dollars, a figure approaching the country’s entire gross domestic product. Upon completion, the integrated hub will process 900,000 barrels per day of crude across three refineries, with each having potential for expansion to 500,000 barrels per day, targeting overall production capacity of 1.5 million barrels per day.