An eight member board of directors was sworn in by Mr. Emmanuel Armah-Kofi Buah, the Minister of Energy and Petroleum on Friday 14th February 2014.
The board is made up of Mr. Ernest B. Kakra Essamuah (Chairman); Mr. Kingsley Kwame Awuah Darko(Managing Darko);
Mr. Kojo Amissah(Member); Mr. Kofi I. Adams (Member); Dr. Albert K. Akpelu Jnr(Member);Mrs. Comfort N.L Ahwoi (Member); Mr. Steven K. M. Ahiawador (Member) and Dr. Alfred A. Botchway.
During the ceremony, Mr.Buah Commended the members on their nomination; he also challenged them to harness their expertise to make decisions for the benefit of Ghanaians as a whole.
He further tasked the members to amongst other things popularise the use of LPG in rural areas in order to promote the conservation of nature;protect strategic depots and pipelines to safeguard the transportation of petroleum products as well as urged the use of barges through the Volta Lake as an alternative means of transport for petroleum products so as to reduce cost…..
MEMORANDUM OF UNDERSTANDING
BETWEEN BULK OIL STORAGE AND TRANSPORTATIONCOMPANY LIMITED
AND VOLTA LAKE TRANSPORT LIMITED
FOR OPERATION OF BARGES, TUG BOAT AND A FLOATING DOCK MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding is entered into this day of June 18, 2013 BETWEEN: Bulk Oil Storage and Transportation Company Limited of P. O. Box MB 499 Accra, with offices situate at Plot No. 11, Nortei Ababio Street, Airport Residential Area, Accra (hereinafter called BOST or Employer) represented by its Managing Director, which shall include the person(s) for the time being performing the duties of that office of the one part, AND Volta Lake Transport Company Limited of P. O. Box 75, Akosombo, (hereinafter called VLTC or Operator)represented by the Managing Director which shall include the person(s) for the timebeing performing the duties of that office of the other part.
a. BOST, among other functions is responsible for the development, maintenance and operation of infrastructure for the bulk storage and transportation of petroleum products and is mandated to procure and manage Strategic Fuel Reserves for Ghana.
b. BOST is the owner of a Tug boat (“MV Debre”), a floating dock and four (4) river barges namely BOST 1, BOST 2 each with a capacity of 750,000 litres, and BOST 3 and BOST 4 each with a capacity of 900,000 litres and ancillary facilities/equipment including a mooring jetty, generating set etc. all referred toherein as the ”Facilities”.
c. VLTC is among other functions responsible for the operation of liquid cargo barges on the Volta Lake for the shipment of petroleum products between Akosombo and Buipe ports.
d. The parties at a meeting with the Minister for Energy and Petroleum on June 05 2013 agreed that VLTC should operate the Facilities herein for and on behalf of BOST pursuant to the conclusion of negotiations for the sale and transfer of the facilities to VLTC. VLTC agreed to transport BOST’s petroleum products on the Volta Lake from BOST’s Akosombo depot to its Buipe depot, and to operate and maintain Tug boat (“MV Debre”), BOST 1, BOST 2 BOST 3, BOST 4 and the floating dock for this purpose. NOW THEREFORE, in consideration of the mutual covenants, undertakings and conditions set forth below, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
1.0 VLTC shall operate and maintain the Facilities for and behalf of BOST to ensure transportation of bulk petroleum products from BOST depot at Akosombo to BOST depot at Buipe.
2.0 BOST confirms that it shall make available at Akosombo, a minimum cargo volume of three (3) million litres of petroleum products weekly into BOST storage tanks at Akosombo for transportation to Buipe.
3.0 Under circumstances where it is agreed between BOST and VLTC that the BOST tug boat cannot be used for a period of time, VLTC may use its own Tug boats to push the four (4) barges named herein to ensure that transportation of petroleum products to Buipe as stated herein is not unduly interrupted; under such circumstances, BOST and VLTC shall negotiate appropriate compensations for the use of the VLTC tug boat.
4.0 In the event of MV Debre pushing BOST barges and VLTC solid cargo barges simultaneously, BOST and VLTC shall negotiate appropriate compensation.
5.0 VLTC shall at all times provide flow meters duly calibrated and certified by the appropriate authorities at the barge inlet at Akosombo depot and discharge point at Buipe to measure fuel delivery at the respective destinations.
6.0 VLTC shall prepare a preventive maintenance schedule for the Facilities and submit same to BOST for approval for execution by VLTC and subsequent payment by BOST.
7.0 VLTC shall submit to BOST for approval and procurement a recommended list of spare parts and consumables that shall be required for the operation of the Facilities for the duration of this MoU.
8.0 VLTC shall report to BOST immediately any unusual incident(s) or defect(s) that are detected on the Facilities.
9.0 VLTC shall at the approval and cost of BOST carry out all required repair or breakdown maintenance on the Facilities and submit appropriate reports on work done within fourteen (14) days to BOST and BOST may opt to witness any such maintenance works.
10.0 VLTC shall keep records of maintenance activities on the Facilities and submit monthly reports to BOST.
11.0 VLTC shall provide crew inclusive of Captain, Chief Officer, Navigators, Chief Engineer, Electricians and Liquid Cargo Officers for the Facilities.
12.0 BOST shall have two owners’ representatives (super cargo) to be part of the crew and at least one (1) of them shall always be on board the Tug boat “MV Debre” when transporting petroleum products.
13.0 VLTC shall bunker the BOST Tug boat in accordance with the limits agreed between BOST and VLTC and the cost of bunkering paid to VLTC within thirty(30) days.
14.0 All revenue from BOST1, BOST2, BOST3, and BOST4 shall accrue to BOST.
15.0 VLTC Shall charge BOST 17.5 % of the gross revenue per barge.
16.0 VLTC shall invoice BOST for services rendered in respect of operation of the facilities and payment shall be made within thirty (30) days after submission of invoice.
17.0 Payments to VLTC by BOST for operating the Facilities shall be as agreed between the two parties.
18.0 BOST shall provide insurance for the Facilities whist VLTC provides insurance for the goods in transit.
OBLIGATIONS OF PARTIES
BOST shall sell, assign and convey to VLTC as follows:
(i) The Tug boat (“MV Debre”), four (4) barges (BOST 1/BOST 2/BOST3/BOST 4), floating dock and ancillary facilities at Debre
(ii) All governmental approvals, permits and licenses with respect to the fleet of vessels.
(iii) All contracts and agreements with respect to the fleet of vessels.
(iv) All plans and other documents with respect to the fleet of vessels.
(i) VLTC shall secure funding for the purchase of the Facilities. Transactional advisors of both parties, BOST and VLTC are to determine the amount of the purchase price and the terms and conditions of
(ii) Volta Lake Transport Company Limited (VLTC) undertakes to provide payment guarantee in a form acceptable to BOST in respect of the proposed transactions by VLTC to acquire a fleet of vessels from BOST.
BOTH PARTIES AGREE
(i) That a Sale and Purchase Agreement (SPA) shall be concluded within ninety (90) days.
(ii) That BOST and VLTC confirm that they are in full agreement to the sale and purchase of the Facilities and will act in good faith to ensure that no impediments arise to conclude the SPA within the planned ninety (90) days.
(iii) That any dispute or difference regarding the negotiation of the SPA which cannot be settled amicably shall be settled definitely and conclusively by an arbiter appointed by the Minister for Energy and Petroleum.
BOST and VLTC shall each designate a representative (“Designated Representative”) to act on its behalf in overseeing the performance of this MOU. The designated Representatives shall be Manager of Corporate Planning for BOST and Director of Corporate Affairs for VLTC. The Designated
Representatives of the parties shall be the primary means for communication and all other interactions between the parties that are required under this MOU.
If either Employer or Operator is rendered wholly or partially unable to perform its obligations under this Agreement (other than payment obligations) due to a Force Majeure Event, the party affected by such Force Majeure Event shall be excused from whatever performance is impaired by such Force Majeure Event, provided that the affected party promptly, upon learning of such Force Majeure Event and ascertaining that it will affect its performance hereunder, (i) promptly gives notice to the other party stating the nature of the Force Majeure Event, its anticipated duration, and any action
being taken to avoid or minimize its effect and (ii) uses its reasonable commercial efforts to remedy its inability to perform. The suspension of performance shall be of no greater scope and no longer duration than that which is necessary. No obligations of either party which arose before the
occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. The burden of proof shall be on the party asserting excuse from performance due to a Force Majeure Event.
This Agreement shall be binding upon and inure to the benefit of the successors-in-title of the parties hereto.
This Agreement shall be governed and construed in accordance with the laws of Ghana and the courts of Ghana shall have exclusive jurisdiction to hear and decide any suit, action, proceedings and any dispute that may arise out of or in connection with this Agreement.
Any notice or notification to be given by either party to the other shall be delivered by hand or sent by registered post or facsimile or e-mail addressed in each case to the relevant party at its address specified in this Agreement.
EFFECTIVE DATE AND TERM
This MoU shall be effective and shall govern the rights and obligations of the parties from and after June 17, 2013 or a period of ninety (90) days pending the conclusion of SPA.
BOST wishes to inform the General Public and our Partners that there are sufficient quantities of fuel in the country, for this reason there is no fuel shortage of petroleum products in the country. The challenge now is the delivery of the product to the various depots across the country to ensure the oil marketing companies serve their filling stations.
We advise the general public particularly the Northern part of the country not to engage in panic buying of petroleum products as every effort is being made to address the problem.
The current issue aroused because of technical challenges BOST encountered at its Buipe depot between BOST and Tanker drivers over the mode of discharging of fuel into the Buipe depot which serves the Northern sector of the country. The stabilization of the markets is on-going and by the close of business tomorrow, the situation should return to normal.
BOST as a company has a policy to install flow meters in all our depots to accurately record quantities of petroleum products discharged from bulk road vehicles (tankers) into storage tanks at the various depots. The use of T-Bar in physical petroleum measurement has been found to be inefficient as this depends entirely on discretion of persons involved in the measurement, which are sometimes manipulated to the disadvantage of BOST resulting in product losses.
In the light of the above, BOST installed flow meters at its Buipe depot, and since the operationalization of the depot in January, 2011 products have been discharged into storage tanks by the use of flow meters. The Ghana Standards Authority has authenticated flow meters as an efficient way of dispensing the right quantities to the consumer.
As a result efforts are currently underway to install flow meters in other depots which still use T-Bar in products measurements. To give assurance to the drivers and all concerned that the meters operate accurately, they are verified regularly by the use of “prover tanks” calibrated for a fixed volume of product and passed through the meter to check its accuracy. This is also done by the Ghana Standards Authority.
We need to control the losses on the products entrusted into our care at the depots and this can be achieved by the use of flow meters to eliminate or reduce the level of human involvement in petroleum measurement.
On January 28, 2013, the meters were found to register inconsistent readings and in order not to create product shortages in the Northern sector of the country, the depot temporarily used the T-bar pending the rectification of the fault. Repair and calibration of the meters were completed on February 1, 2013 and the following day BOST was ready to resume product discharge through flow meters and invited the drivers to resume work. However, the tanker drivers insisted on the continuous use of the T-bar and this created the back log.
However, a meeting was held on Monday February 18, 2013 between BOST and the Tanker Drivers Union and an agreement has been reached on the processes and procedure for the discharge of the backlog of BRV’s (tankers). Discharge of products into the storage tanks resumed yesterday afternoon and this process will continue until the situation up North is regularized.
Mr. Salifu Nat Acheampong
Corporate Communications Manager
The Bulk Oil Storage and Transportation Company Limited (BOST) has started the use of pipelines to transport petroleum products to the northern part of the country through Akosombo, the first time in two years.
The Tema-Akosombo Petroleum Pipeline (TAPP) has been the subject of vandalism for the past two years, as unscrupulous individuals bore holes in the pipelines at remote spots to siphon products.
The resumption of the pipeline product transfer will reduce product transportation cost by up to three times what it cost to transport by trucks through the road all the way to the northern parts of the country.
The Managing Director of BOST, Dr Yaw Akoto, told the Daily Graphic that with the
operationalisation of the TAPP, product transfer by road would now seize, thus reducing the cost of transferring product to the north with a lot of saving to the state.
He said an estimated 12 million litres a month would be transported for now, a figure which was likely to increase when exportation to neighbouring countries began.
The TAPP was constructed in 1994 to transmit petroleum products from the Accra Plains Depot in Tema to Akosombo through the MAMI WATER depot. On arrival at Akosombo, products are loaded onto river barges on the Volta Lake to Buipe depot from where the products are distributed throughout the Northern Sector and part of the Brong Ahafo Region.
Dr Akoto said in recent times the TAPP had been subjected to vandalisation which had rendered the pipeline in-operational for the past two years.
“For the past two years, BOST has put in a lot of effort to repair the pipeline and each time an attempt was made to commence product transfer, the pipeline was vandalised and the project was halted,” he explained.
During these years BOST had resorted to the use of Bulk Road Vehicles to transport products by road to the northern part of the country in order not to starve it, but at a high cost to the nation. “In fact, the cost of transportation through the pipeline is only 25 per cent the cost by road and we are happy to have resumed the pipeline transmissions since May 22 this year,” the BOST Managing Director explained.
The resumption was possible after BOST had sought the assistance of National Security, which mobilised some men to patrol the pipeline on a daily basis with the assistance of the military personal.
BOST has now forged a partnership arrangement with the National Security Council which will provide 24/7 military patrol along the facility to ensure the pipeline is not vandalised and continues to be operational.