ADB to partner Posco to establish oil palm refinery

The Managing Director of the Agricultural Development Bank (ADB) Limited, Dr John Kofi Mensah, has expressed the readiness of the bank to partner Posco International, a multinational company from South Korea, to establish an oil palm refinery in the country.

Speaking during a courtesy call on him by the Chief Executive Officer of Posco International, North and West Africa, Mr Wonchae Yi, in Accra yesterday, Dr Mensah said the establishment of the refinery would make Ghana a major exporter of not only the raw material but also finished palm oil and kernel products which would yield more benefits to the country.

Posco International is a multinational company with expertise in the establishment of value chains in various areas of business, including steel, energy, agro-commodities, chemical products, machinery parts and infrastructural development.

The company has discovered and developed sustainable business models in more than 80 countries worldwide.

Follow up visit

The courtesy call was a follow-up to preliminary discussions with a Ghanaian delegation during private-sector facility sessions of the Global Climate Fund’s 24th Board Meeting in Incheon, South Korea.

The Ghanaian delegation was led by the Deputy Minister of Transport, Mr Daniel Nii Kwartei Titus-Glover, and included Dr Mensah.

Mr Wonchae led his company’s delegation which held discussions with the leadership of the ADB in Accra.

Feasibility studies

Dr Mensah, who welcomed the partnership, said the bank was prepared to assist with the necessary feasibility studies for the project to take off.

“We are happy to partner Posco International to help establish the refinery, which falls in line with the government’s Planting for Export and Rural Development (PERD) programme,” he said.

He added that with assistance from a National Designated Authority (NDA) under the Ministry of Finance, “we are going to fast-track the process of partnering Posco International for other projects in the country”.

According to him, the bank had the necessary expertise to make the establishment of the refinery possible, since it had been at the forefront of partnering companies such as the Ghana Oil Palm Development Company (GOPDC), the Benso Oil Palm Plantation (BOPP) and the Twifo Oil Palm Plantation (TOPP) in similar ventures.

Fresh palm fruits and palm kernel can be processed into vegetable cooking oil, glycerin, bio-diesel and can be used for soap-making, including washing and medicinal products.

The sap (palm wine) from the oil palm tree is also a resource for processing into various alcohols for industrial and domestic use.

Delivery partner

The ADB managing director further indicated that aside from the establishment of the refinery, the bank was going to be the delivery partner under the Ministry of Transport’s Accra City Electric Bus project.

He said the government chose the ADB because of its good financial performance over the last two years and its general experience, especially in financing the purchase of 150 buses for the Intercity STC Coaches Limited and the Metro Mass Transit Limited.

Dr Mensah also said due to the eco-friendly policy of Posco International, the ADB was going to establish a Green Climate Desk to ensure that all projects and activities to be undertaken as partners met the Green Climate agenda.

Readiness

Mr Wonchae expressed the readiness of his company to establish the oil refinery in Ghana to create more jobs and also deepen Ghana-South Korea economic relations.

He said the partnership was in line with the company’s strategic expansion drive in Africa, adding that Posco International would also collaborate with the ADB in other areas of interest to ensure that the agricultural sector in Ghana received the necessary boost.