The Bulk Oil Storage and Transportation Company Limited (BOST) is set to begin the construction and installation of the 12-inch pipelines delayed for over 11 years in the United States by American firm, American Tank and Vessel Inc. (AT&V).
Mr Edwin Alfred Provencal, BOST Managing Director said the construction and installation of the 70-kilometre pipeline expansion project from Tema to Akosombo would begin in mid-2022 and expected to be completed by the end of 2023.
“I am happy to announce to you on behalf of the Board of Directors and Management of BOST that our 12-inch pipelines procured in 2008 which had been left at the mercy of the weather in the United States finally arrived in the country,” he disclosed.
He said the construction and installation of the pipelines would cost the company $24 million.
In total, the 12-inch pipelines received by BOST number 5,300 with 100 of the pipelines destroyed as a result of the 12-year corrosion period.
He noted that the installation of the pipelines would aid to expand the petroleum transportation line running between Tema and Akosombo through to the Northern part and other neighbouring countries.
“This could not have come at a better time than now when the reactivation of the Bolgatanga Depot for export had made it more than necessary for high volume of petroleum product to be transferred between Tema and Akosombo for inward distribution to Buipe through our river batches to meet the surging demand in the northern sector and the landlord countries,” he added.
He explained that the initial cost of the pipes to Ghana was US$63.2 million, however, an additional $8 million was used to refurbish the pipes after they were abandoned and to cover the cost of a settlement agreement.
The BOST Managing Director said additional $2.1 million was spent to ship the goods to the country, bringing the total cost of procuring of the pipeline to $73.78 million.
He added that an investment of 63.2 million dollars in the year 2008 at a rate of 9 per cent per annum for 12 years would have yielded 178 million dollars today but that could not happen due to series of challenges between BOST and AT&V.
He thanked the President, the Parliamentary Select Committee on Mines and Energy, the immediate past and current Minister of Energy for their support and collaboration.
“To the people of Ghana thank you for your patience and confidence reposed in us as a team to deliver this important mandate, the civil society groups and the media for the watchdog, role and social contract with us has paid off today,” he said.
Mr Ekow Hackman, the Board Chairman of BOST said the issue of the pipelines was a long saga of delays as it was abandoned till 2018 when Mr George Mensah Okley, the former Manager of BOST took it as a national duty to bring it down.
He noted that the pipes were seized as a result of an outstanding payment which the company reached out with the manufacturers, but needed to refurbish it before it could be shipped.