Ghana / Oil / Building Capacity to Manage Ghana’s Oil – World Bank assists with US$38 million Government Agencies, Local Authorities, Educational Institutions and Civil Society to benefit
ACCRA, Ghana, December 21, 2010/African Press Organization (APO)/ — The World Bank Board today approved a credit of US$38 million to the Government of Ghana for implementation of an Oil and Gas Capacity Building Project.
The Project, which has become necessary following Ghanas discovery of oil and
gas in commercial quantities has two main objectives: first, to help improve
public management and regulatory capacity and enhance sector transparency by
strengthening the institutions managing and monitoring the sector; and second,
support the development of indigenous technical and professional skills needed
by the petroleum sector through support to selected educational institutions.
Since the oil and gas discoveries of 2007, Ghana and its partners in the
Jubilee field have worked hard to bring it into production in barely three
years a record time by industry standards but institutional development for
sector management by the state and education and skills development face
significant challenges. The Oil and Gas Capacity Building Project has been
prepared in response to these challenges and to support Governments desire to
rapidly fix them, says Sunil Mathrani, World Bank Task Team Leader for the
Project. The Ministry of Energy, the Ghana National Petroleum Company and the
Environmental Protection Agency are among the key state institutions targeted
for support.
Specifically the Project will provide institutional support to the Ministry of
Energy and the soon-to-be-established petroleum regulatory body to enable them
play their oversight, coordination, policy planning and implementation as well
as monitoring and evaluation roles effectively. Other specific functions to be
enhanced include upgrading the Ghana National Petroleum Corporations petroleum
data repository; and support to the Environmental Protection Agency to enhance
its ability to manage and monitor environmental issues in the oil and gas
sector. Other beneficiaries are the Ministry of Finance and Economic Planning,
particularly its agencies such as the Ghana Revenue Authority and the
Extractive Industries Transparency Initiative Secretariat; the Attorney
Generals Department and the Economic & Organized Crime Office.
Another component of the Project targeting human capital development will
provide support to the Kwame Nkrumah University of Science & Technology to
improve petroleum engineering and petrochemical engineering teaching and
research capabilities. Additionally it will provide support to vocational
training institutions for development of programs focused on technical skills
development for the oil and gas industry via support to the Takoradi Technical
Institute, Kikam Technical Institute and the Regional Maritime University.
Given the strategic role civil society is expected to play in promoting
accountability and community participation, an additional grant of US$2 million
is being provided under the Banks Governance Partnership Facility (GPF) to
support a wide range of activities to be championed and implemented by civil
society and community based organizations. This Project seeks to support the
determination of the people of Ghana to make oil a blessing and not a curse. We
hope that the support to educational institutions will contribute to Ghanas
intention to develop local content and employment in the sector as quickly as
possible, said World Bank Country Director, Ishac Diwan. We see a big role
for CSOs, he added, and it is part of the plan to support capacity building
at that level, to enable them play their part actively as agents of social
accountability. We have been assisting the CSO platform on Oil and Gas, and we
are happy they are already serving as great partners to Government.
Hon Joe Oteng-Adjei, Minister of Energy on his part notes this Project could
not have come at a better time. Building capacity in the oil & gas sector is
paramount, and we are going to ensure a swift implementation in order to
achieve good results for the people of Ghana.
The US$38 million World Bank support a concessional loan with a repayment
period of 35 years including a 10 year grace period constitutes two-thirds of
the total Project cost. Other co-financiers are the Governments of Ghana and
Norway. The Project is planned to take off in 2011 and end in 2015.
SOURCE
The World Bank
