- The MD of BOST has said the corporation needs uS$150 million capital to turnaround its fortunes.
- He said the new funding will make the company economically viable.
- Mr Provencal said the funds could come from an increase in the ‘BOST Margin’ in the petroleum product Price Build-up, funding from investors, or government support.
The Bulk Oil Storage and Transportation Company Limited (BOST) needs US$150 million capital to turnaround its fortunes.
According to the Managing Director of BOST, Edwin Nii Obadai Provencal, when the money is realized, about US$75 million of it would be used to rehabilitate the company’s infrastructure and the other half would be deployed as working capital.
He explained that the new funding would make the company economically viable where they will pay a dividend to the government within the next two to three years.
The MD was speaking at the sideline of a workshop for members of the Institute of Financial and Economic Journalists (IFEJ) over the weekend.
He explained that the funds could come from an increase in the ‘BOST Margin’ in the petroleum product Price Build-up, funding from investors, or government support.
He indicated that if the BOST margin is implemented, the prices of fuel would increase but it would be of great benefit to consumers in the medium-to-long term since BOST’s effectiveness would reduce the price at the pumps.
Mr Provencal added that the capital injection would ensure that BOST moves from its current state of a loss-making to a profit-making and dividend-paying company.
He said the company plans to improve on its core mandate hence must not be limited by the non-availability of funds to support the ideas and new strategies developed.
“If the regulator does not regulate well and allows cross zonalisation, then, our dreams may be delayed,” he said.
He added that the transformation vision of BOST may not materialize if they fail to offer effective stakeholder management.