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Friday, September 12, 2014
One of Ghana’s unions, the Trades Union Congress (TUC), has expressed concern over some provisions of the commercial agreement between the government and Lonrho for the Atuabo Free Port. The union is petitioning the government to review portions of the Atuabo Free Port Commercial Agreement.
In an interview with the Daily Graphic the Secretary General of the TUC, Kofi Asamoah, said the exclusivity provisions in the agreement clearly outlined road maps to tie the government into facilitating financing for the project. Asamoah said with the exclusivity clause the developer, Lonrho, would operate the free port with a tax exemption for 25 years, with further extension rights for another 25 years.
Consequently, the development of any such facility in the future by government and its affiliated bodies would require the express permission of Lonrho.
Clause 12.4 of the agreement states: “The GoG (government of Ghana) shall extend the necessary cooperation and use its reasonable efforts to facilitate the developer in its efforts to arrange financing for the project and any additional project as necessary, including by entering into direct agreements.”
According to Asamoah the clause committing the government to seeking fund for the project and that could be a potential source of judgment debt to the developer should the government renege on it.
“In our view, it is wrong for the company to be given a free port status and be placed under the Free Zones Board,” Asamoah opined. “Ports are supposed to be planned, built and managed before they could be declared free ports,” he added.
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