Ghana’s bold $60 billion petroleum hub project is progressing steadily as the Petroleum Hub Development Corporation (PHDC) oversees the country’s dream of building a world-class hub in the Western Region.
According to the PHDC, factors such as Ghana’s strategic location, access to deep waters, stable political environment, and other factors make the hub a good investment. The icing on the cake is the growing demand for petroleum products, not only in Ghana, but also on the entire continent.
The project envisages three refineries, petrochemical plants, storage plants, tank farms, port infrastructure, jetties, and other ancillary facilities. The entire project, expected to be constructed in three phases, is estimated to cost a whopping $60 billion, a figure almost close to the entire country’s GDP.
It is the strategy that the government provides the basic infrastructure, such as serviced lands, roads, and amenities. However, the various facilities will be spearheaded by the private investors and consortia.
Given the capital-intensive nature of the project, one big question continues to surface: Where is the government’s part of the money coming from to finance its part of the project?
A new briefing from the Petroleum Hub Development Corporation at the Africa Extractives Media Fellowships offers a clearer picture. At least, one thing is clear: the government is spreading its funding sources across several streams in an effort to reduce pressure on the national budget while keeping the project on track.
The following are some of the funding streams to finance the project;
Parliament to Foot Part of the Bill through National Budgets
According to the PHDC, it is expected that every year, Parliament will approve funds to help the Corporation run its activities. These allocations, taken from the national budget, are meant to support planning, coordination, and early-stage project development.
While this underscores the government’s commitment to the hub, it also raises concerns about how much strain the initiative could place on already tight public finances, especially at a time when competing sectors such as health, education, and infrastructure are also demanding more money.
It is worth noting that there was no allocation in the 2026 Budget to the Corporation, but it is optimistic that subsequent budgets will be kind to the project.
The Hub Will Generate Some of Its Own Money
The Corporation is also allowed to generate internal revenue through fees and charges. These fees are backed by law and are expected to grow as investor interest increases. It means the hub can gradually shift from depending on the state to supporting itself.
For instance, the corporation can charge rents, fees for approvals, and licenses, among others.
This internal revenue also gives the Corporation flexibility, meaning money that can be used quickly without waiting for long government procedures. But there is a challenge. These earnings will only become significant when the hub begins attracting substantial commercial activity.
Borrowing – But Within Strict Limits
As expected, the Corporation can take loans, but only under tight financial management rules. This is meant to prevent runaway borrowing or uncontrolled borrowing, which can be excessive and could worsen Ghana’s debt situation. In a country where public debt remains a sensitive topic, this safeguard is essential.
The fear is that if the hub does not attract the level of investment projected, the government could find itself supporting loan repayments, which would add pressure to future budgets.
Support from Other Public Bodies Helps Share the Load
Another important funding stream comes from grants given by other state agencies. For instance, the Unified Petroleum Price Fund, managed by the National Petroleum Authority, is providing support for specific activities. These grants reduce the need for direct government spending while keeping key parts of the project moving.
This shared-support model spreads the financial responsibility across the public sector, but it also means several institutions must remain financially healthy for the hub to keep receiving assistance.
What Does This Mean for Ghana’s Fiscal Space?
According to the PHDC, the Petroleum Hub will draw money from a mix of taxpayer funds, internal revenue, responsible borrowing, and grants from public institutions. This blended approach helps prevent the project from becoming a heavy burden on the national budget.
However, it does not remove the risks entirely. If managed well, the hub could eventually pay for itself, stimulate investment, create jobs, and boost export earnings.
But if delays or cost overruns occur, the government may face additional fiscal pressure at a time when it is already working to stabilize the economy.
