The Managing Director of the Agricultural Development Bank (ADB) Limited, Dr. John Kofi Mensah, has said the bank is set to partner Posco International of South Korea for the establishment of a multi-million-dollar oil palm refinery in Ghana.
Posco International is a South Korean based multi-billion-dollar company with expertise in establishing value chains in various areas of business including steel, energy, agro-commodities, chemical products, machinery parts, infrastructure and so on, discovering sustainable business models in over 80 countries worldwide.
Available figures indicate that Ghana is currently the 8th-largest producer of Palm Oil in the world with an estimated production of 243,852 tonnes annually, mainly dominated by private small-scale farmers.
According to Dr. Kofi Mensah, establishment of the refinery will make Ghana a major exporter of not just the raw material but also the finished product of palm and kernel oil, which will far exceed other cash crops.
Speaking during a courtesy call on Management of the Bank by the Chief Executive Officer of Posco International in charge of North & West Africa, Mr. Wonchase Yi, in Accra, Dr. Kofi Mensah welcomed the partnership and indicated the bank’s preparedness to assist with necessary feasibility studies for the project to take off in earnest.
“We are happy to partner Posco International to help establish the refinery, since it also falls in line with government’s Planting for Export and Rural Development programme (PERD),” he said.
Dr. Kofi Mensah said the meeting is a follow-up of preliminary discussions held in South Korea by the Ghanaian delegation led by the Deputy Minister of Transport, Daniel Nii Kwartei Titus Glover, during the Private Sector Facility sessions at the 24th Green Climate Fund Board Meeting held in Incheon, South Korea.
“With assistance from the National Designated Authority (NDA) under the Ministry of Finance, we are going to fast-track the process of partnering PSOCO International for several projects in the country,” he said.
Dr. Mensah indicated that the bank already has the necessary expertise to make establishing the refinery possible, since it has been at the forefront of partnering companies like the Ghana Oil Palm Development Company (GOPDC), Benso Oil Palm Plantation (BOPP) and Twifo Oil Palm Plantation (TOPP) in similar ventures.
Fresh Palm Fruits and Palm kernel oil can be processed into vegetable cooking oil, glycerine, Bio-diesel; and in soap including for washing and medicinal purposes. The tree’s sap is also a resource for processing into various alcohols for industrial and domestic use.
The Managing Director further revealed that aside the establishment of the refinery, the bank is going to be the Delivery Partner, under the Ministry of Transport, for the Accra City Electric Bus project.
He said ADB was chosen by government because of its experience, and also its experience in financing the purchase of 150 buses for Intercity STC Coaches Limited and the Metro Mass Transit Limited, and good financial performance over the past two years.
He further revealed that due to the eco-friendly policy of Posco International, the bank is going to establish a Green Climate Desk to ensure that all projects and activities undertaken as partners meet the Green Climate agenda.
Chief Executive Officer of Posco International in charge of North & West Africa, Mr. Wonchae Yi, expressed the company’s readiness to establish the oil refinery in Ghana to create more jobs and also deepen Ghana-South Korea economic relations.
He indicated that the partnership is in line with the company’s strategic expansion drive toward Africa.
Mr. Yi said his company is going to partner ADB in other areas of interest to ensure that the country’s agricultural sector receives the necessary boost.