BOST Reduces Its $624Million Debt Down To $39Million Within 4 Years
The Bulk Oil Storage and Transportation Company Limited (BOST) which before 2017 was indebted to the tune of $624million, has made tremendous progression in the last four years in its debts repayment plan with the firm paying 73% via Internally Generated Funds (IGFs) and government of Ghana supplementing with 27%.
Addressing media in Accra on Sunday, Managing Director Mr. Edwin Provencal reiterated the prudent measures that were put in place at BOST that enabled it offset its debt with 73% via IGFs and government of Ghana supporting its debt settlement with 27%.
The Bulk Oil Storage and Transportation Company Limited(BOST) was incorporated in December 1993 as a private limited liability company under the Companies Act,1963 (Act 179) with the Government of Ghana as the sole shareholder.
BOST has the mandate:
To develop a network of storage tanks, pipelines and other bulk transportation infrastructure throughout the country.
To rent or lease out part of the storage facilities to enable it generate income To keep Strategic Reserve Stocks for Ghana To own, manage and develop a national network of oil pipelines and storage depots To manage the “Zonalization” policy of the National Petroleum Authority(NPA) and To develop the Natural Gas Infrastructure throughout the country.
In this regard, BOST is responsible for building strategic reserve stocks to meet a minimum of six (6) weeks of national consumption in the short and medium term and to increase stock level to twelve (12) weeks in the long term.
To adequately fulfil its mandate, BOST has developed a network of storage and pipeline infrastructure throughout the country.
The Company currently has six (6) Depots nationwide. These are located in the Accra Plains, Mami Water, Akosombo, Kumasi, Buipe and Bolgatanga.
Pipelines link the Tema Oil Refinery (TOR) to the Accra Plains Depot which in turn is linked to the Mami Water Depot and ends at the Akosombo Depot.
Another pipeline links the Buipe Depot to the Bolgatanga Depot. For petroleum products to reach the northern parts of the country, it is conveyed by pipeline from the Tema Oil Refinery through the Accra Plains Depot and Mami Water to Akosombo where it is loaded onto River Barges to Buipe.
It is then conveyed to Bolgatanga by 261km- 8 inch pipeline.
The Depot in Kumasi receives products by Bulk Road Vehicles (BRVs) from the Accra Plains Depot. BOST has built four barges to convey petroleum products from Akosombo to Buipe for onward transmission to Bolgatanga.
However the Bolgatanga Depot was recently recommissioned after several years of inactivity thus making it necessary for Buipe to feed Bolgatanga by pipeline.
Story by: Joshua Kwabena Smith