Quantum Oil Terminal Limited says its US$8million project financing facility from the International Finance Corporation (IFC) will help address storage constraints in the petroleum products distribution value chain and reduce shortages in the country.
“This collaboration with IFC on the Tema Tank Farm project is critical for us and for Ghana. IFC support to establish international best practices in corporate governance and environmental and social systems throughout the Quantum Group will position us for optimum performance as Ghana liberalises petroleum product pricing,” said Mr. Emmanuel Egyei-Mensah, Quantum Group Executive Chairman and Chief Executive Officer of Quantum Oil Terminal Limited, in Accra at the signing ceremony.
Quantum Oil Terminal is currently developing a 55,000 metric tonne petroleum products storage facility near the port of Tema, and about two years ago took a decision to seek a financing facility from the IFC to embark on a strategic expansion project to address storage constraints in the petroleum production value chain.
Mr. Egyei-Mensah explained that the agreement with IFC has positioned the company to deepen its corporate governance structure and risk management, and improve its financial systems to the international best practices — which has also attracted funding from the OPEC Fund for International Development to provide an additional US$8million loan.
Ronke-Amoni Ogunsulire, IFC Country Manager for Ghana, in congratulating the Group and his staff for spearheading this important and timely project that will increase Ghana’s storage capacity for refined petroleum products, said she was pleased to sign the loan agreement for financing the Tema Tank Farm Project.
She said IFC recognises the tremendous investment the Quantum Group has made — in terms of financial resources and human resources — to put together such a large venture.
“We are honoured to partner with the Quantum Group; not only because it is a leading player in the sector but also because the project aligns with our priority objective of helping Ghana to solve some of its most pressing concerns.
“In this case, helping to alleviate fuel shortages for the benefit of consumers through the provision of adequate, modern and efficient storage facilities.
“We expect other positive impacts from this project, including unlocking business opportunities in several sectors and the creation of jobs — particularly in the oil marketing companies that sell fuel to end-users at filling stations.”
The energy sector is a priority for IFC, she said, adding that “We are working on projects in every part of the value chain, from upstream oil & gas exploration and production all the way to downstream refined product distribution”.
Ogunsulire explained that the Corporation has invested a total of over US$2.4billion into the country, and in the past five years investment in the energy sector amounted to US$525million including oil and gas exploration and production, power production, and refined petroleum distribution.
“IFC is committed to partnering with local private sector players to build capacity and meet the growing energy needs of Ghanaians,” remarked Ogunsulire.