PIAC Calls for Long-Term Framework to Ensure Efficient Use of Petroleum Revenue in Ghana——At a recent panel discussion themed “A Comprehensive Look at PIAC‘s Inspection of Petroleum Revenue-Funded Projects in 2024,” key stakeholders, including technical officers and civil society organizations (CSOs) from PIAC, highlighted gaps in the existing approach to petroleum revenue allocation.
Mr. Emmanuel Gyapong, a technical officer at PIAC, emphasized that without a legislatively approved long-term development framework, successive governments will continue prioritizing projects based on short-term political interests rather than long-term national goals.
“A well-structured long-term framework approved by Parliament will compel governments to align spending with Ghana‘s overarching development objectives. This would reduce inefficiencies, improve transparency, and enhance the impact of petroleum-funded projects,” he stated.
One of the key concerns raised by PIAC is the lack of involvement of host and beneficiary district assemblies in project planning and execution. Mr. Richard Ellimah, a PIAC member representing CSOs, revealed that many contracts for petroleum revenue-funded projects are awarded centrally in the capital without adequate consultation with local authorities. This has led to inefficiencies, delays, and poor monitoring.
“Contracts are awarded in Accra and does not involve host or beneficiary assemblies. They are mostly not aware, district assemblies must be involved to monitor and supervise projects. Assemblies must send monthly reports to Accra to promote efficiency and accountability of projects. Indeginous people sometimes don’t like projects so they must be consulted first”. He asserted.
Additionally, PIAC noted that in some instances, indigenous communities resist development projects due to a lack of prior consultation. Ensuring community engagement before project execution is crucial for fostering local ownership and support.
The recurring inefficiencies, slow project completion rates, and lack of local participation reinforce the need for a well-defined, long-term development framework. Such a framework would streamline petroleum revenue allocation, prevent politically motivated expenditures, and ensure projects align with Ghana’s national interests.
To achieve this, PIAC urges Parliament to prioritize the approval of a long-term framework that mandates consistency across successive governments. Furthermore, enforcing stronger accountability measures, integrating district assemblies into decision-making, and ensuring transparency in project execution are essential steps toward optimizing petroleum revenue for sustainable national development.
As Ghana continues to harness its petroleum resources, ensuring their optimal utilization remains a national imperative.
Petroleum Revenue-Funded Projects Across Ghana in 2024
Despite challenges, petroleum revenue has been allocated to several critical projects nationwide. However, project inspections have revealed varying levels of completion and concerns over quality and efficiency. Some of the major projects across Ghana include:
Ahafo Region: A three-story RCC administrative block (70% completed), a 12-unit police bungalow (60% completed), and the Ahafo Municipal Police Station, which remains in poor condition despite being under construction for three years.
Volta Region: Klefe town road upgrades, construction of storm drains in Anlo Korgi, an art gallery, and the Agenda 111 hospital project in Kpeve.
Western Region: Completion of five location workshops, two under construction, a railway school at UMAT, the Kojo Krom-Tarkwa railway project, and defect-ridden Anaji roads.
Upper East Region: Tamini Dam (70% completed, with GHS 250 million allocated), Garu Agenda 111 hospital (60% completed), supply of 25 beds to Paga Hospital, and a three-classroom block.
Ashanti Region: Expansion of the Ejisu section of the N6 Highway (GHS 17 million allocated), rehabilitation of Ejisu-Abriwa road (GHS 7 million), and an unfinished CHPS compound at Akua Krom started in 2020 (GHS 442,000 allocted).
Central Region: CHIPPS compound at Kwekubua was highly unsatisfactory, rehabilitation of Komenda town roads, and dissatisfaction with the bitumen surfacing of Komenda SHS internal and external roads.
Greater Accra Region: The Agenda 111 hospital project at Ningo Prampram, upgrade of the Prampram-Anyaman road (completed), a concrete drain, a three-unit classroom at Dodowa, and durbar grounds at Asutuare in the Shai Osudoku constituency.
