GNPC to finalize $400 million ENI loan

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The Chief Executive of the Ghana National Petroleum Corporation

(GNPC), Alex Mould, has revealed that the state-run oil giant will

soonbe in the international market to finalize the transaction

covering a$400 million dollar loan that will support new capital


GNPC's intention to seek foreign cash for its operations without first

obtaining Parliamentary approval has triggered a never-ending

controversy and a court action to stop the deal.

In an exclusive interview with Citi News in the United States City of

Houston, Mr. Mould made it clear that the team at GNPC has no

intention of seeking Parliamentary approval, especially as a court in

Accra threw out an injunction application filed by some Minority

Members of Parliament (MPs) against the transaction early this year.

He argued that in the ENI transaction, there was a portion of that

transaction that the GNPC felt was not risky and as such should

notattract the rate of return similar to the rate of return that is

paid to investors that do risky businesses.

"If you are going to explore for oil, that is very risky, if you going

to build a pipeline and a receiving facility to connect the gas that

is being produced to our existing pipeline, that is not risky and GNPC

believes that we should be able to fund such things," he added.

International market credibility

Alex Mould further noted that "the international market has proven

that the GNPC is capable of doing this without having government

support this transaction.

As a stand alone project financing, GNPC is able to do this. I think

GNPC should be heralded, its one of the organization just like COCOBOD

who can go into the international market with the name of Ghana to

raise money and we will continue doing this.

"$400 million loan The GNPC Chief Executive said because the court

dismissed the injunction application filed against them, "we are going

ahead and in a few weeks we should complete that transaction.

With the oil prices where they are we should be looking at something

between 300 and 400 million, that is exactly what we need for that


I don't fear Parliament

When asked by Citi News' Richard Dela Sky whether it was right to

subject the loan to parliamentary scrutiny despite calls, Alex Mould

insisted that "I have no fear of going to Parliament, the question is,

do we have to go to Parliament? Its not why doesn't GNPC go to


If you don't go to somebody for approval why do you go to him?"


In January this year, the commercial division of the Accra Fast Track

High court dismissed an injunction application filed before itby three

opposition lawmakers, praying the court to stop the GNPC from

contracting a $700 million dollar international loan without

Parliamentary approval.

The Plaintiff – Mathew Opoku Prempeh, Dr. Anthony Akoto Osei and

Samuel Atta Akyea – had prayed the court to order the GNPCto suspend

any transactions covering the intended loan until thesubstantive case

is decided.

However, the presiding Judge, Justice Mrs. A Bartels-Kodwo, did not

accept their plea and dismissed the application.

The MPs have since served notice they will appeal the decision but it

is unclear if they have filed any papers at the Appeals Court.

Credit: Citifmonline.com

Kofi Oppong Kyekyeku

I am a Ghanaian Broadcast Journalist/Writer who has an interest in General News, Sports, Entertainment, Health, Lifestyle and many more.

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