Management of Atuabo Free Port has denied claims that the contractual agreement between them and the Government of Ghana (GoG) provides them a 50 year tax holiday when the project is completed.

Speaking at a seminar held for journalists and stakeholders at the Labadi Beach Hotel in Accra, the company’s Director, Steve Grey said “in the Memorandum of Understanding (MoU) the commercial agreement between Ghana and Atuabo Free Port allows for a ten year corporate tax exemption so it is untrue that we have a 50 year tax exemption”.

He also denied reports which indicated that the commercial agreement between them and GoG gives them a 25 year exclusive rights which is renewable for another 25 years saying that it was only 10 years which was agreed in the MoU.

He said it was also untrue that the company will be given the exclusive power to determine whether Ghana has the right develop any such facility in future adding that all companies under the Free Zones Board enjoy equal benefits.

Parliament on Thursday, July 17, 2014 ratified a commercial agreement between the government of Ghana, Lonrho Ports Ghana Limited and Atuabo free Port Company Limited for the facilitation of the Ghana Oil and Gas Free Port Project.

The project which would begin by the second quarter of 2015, will be situated at Atuabo in the Western Region and is expected to be fully operational in 2016 to meet the logistics and support requirements of Ghana’s Oil and Gas industry and the wider Gulf of Guinea region.

It involves the construction of a harbour protected by a rock breakwater to the west and a rock groyne to the east, a dredged approach channel, a turning circle, berth pockets and quays.

The project would deliver an airstrip and a helipad to facilitate aircraft and helicopter transportation, as well as other infrastructure like power generation, boreholes, accommodation, offices, a naval base, hydrocarbon fuel storage area and roads.

Other components include service facilities to be located in the port along the quays to provide support services to the off-shore oil and gas industry, including rig repair, waste treatment and management, fabrication and supply facilities.

On how the project will affect the lives of people in the communities where the project will be carried out. the External Affairs Officer of the company Philomena Kuzoe said measures are being put in place to ensure that an appropriate compensation is offered to cushion farmers as well as fishermen and other land owners.

She said a training programme will also be put in place to recruit and train locals who will then be employed to work for the company at the end of the project which is expected at the beginning of construction to employ about 700 people and an additional 300 at completion.

She indicated that a percentage of profits will be used to set up a development trust fund to help in the development of social and infrastructure needs of the communities.