Ghana, South Korea sign Oil Pipeline agreement

Ghana and South Korea on Thursday signed a ?330.4 billion loan agreement to fund the Buipe to Bolgatanga Pipeline Project.

The project would ensure the easy and effective transportation and distribution of petroleum products from Buipe to the three Northern regions. Yaw Osafo-Maafo, Minister of Finance and Economic Planning, signed for Ghana while Eui-Min Chung, South Korean Ambassador signed for his country.

Briefing the media before the signing, Osafo-Mafo said relationship between the two countries dated back to 1977 and had grown steadily since. "This has resulted in South Korea being attracted to Ghana and becoming its potential source and market for Ghana's non-traditional exports."

He said consequently, South Korea had set up a number of companies in Ghana including two projects - the Petroleum Storage Plant at Akosombo and a LPG Cylinder Plant in Accra - under the Economic Development Cooperation Fund

(EDCF).

"In March this year, the South Korean government approved $38.2m, that is, ?330.4bn, under the EDCF for the Buipe to

Bolgatanga pipeline project." The pipeline would be over a distance of 275 kilometres. Osafo-Maafo said the government of Burkina Faso is seeking a French government funding to extend the pipeline from Bogatanga to Ougadougou.

Chung said he hopes that the Project would contribute to the development of the areas where the pipeline would serve.

"I also hope that this project will not only reduce the transportation time and haulage cost but also ensure constant supply of petroleum products thereby eliminating shortages," he added.

Chung expressed confidence in the policies of the government of Ghana, saying the priorities and policies on socio-economic development had shown good signs of progress. "I am confident that Korea and Ghana will be able to build a renewed partnership through friendly co-operative relations and mutual exchanges in the coming years."

At the same function, Twifo Oil Palm Plantation (TOPP) and Benso Oil Palm Plantation (BOPP) presented a total dividend of 6.490bn to government with BOPP alone paying ?5.610bn.