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Business News Mon, 7 Mar 2022

Privatization of TOR will solve its financial challenges – Energy expert

Experts call for privatization of TOR

Required capital will be generated if handed over to a private firm

Poor performance in the refinery due to internal inefficiency, Sulemana


Energy expert, Dr Yussif Sulemana, has added his voice to calls for the privatization of the Tema Oil Refinery.

The company has been facing various setbacks including financial challenges which have led to periodic shutdowns over the years.

In October last year, some staff of the Tema Oil Refinery were arrested for allegedly stealing cables to the tune of GH¢10.4m.

They are currently being interrogated by a committee set up by the Energy Ministry and are likely to face prosecution.

But Dr. Sulemana believes handing over the firm to a private body will address these challenges.

Speaking on JoyNews’, The Probe on Sunday, he lamented that the company is not able to deliver on its challenges despite its prospects.

Dr. Suleman said, “I’ve always advocated for that. I told you that of one the conduits for poor performance in the refinery is internal inefficiency. And now we need funds in the refinery, undoubtedly.

"So yes, I’ll always, 100% call for privatizing the refinery. If not 100%, just give portions to private hands to manage. And what it will do is that, it will inject some bit of efficiency. And then the required capital that we need to inject to bring the refinery back to vibrancy, that will be catered for.

"So yes, privatisation is an option that the government can pick. And I think the high time we did that, the better.”

The refinery which was established in 1963, is mandated to support the country’s energy sector to generate revenue from crude oil.

TOR has therefore not been able to live up to expectations due to the incessant challenges it has faced over the years, leading to the call for its privatization by industry players.
Source: www.ghanaweb.com
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