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The Maritime and Dock Workers Union (MDU) is preparing to file a joinder to the suit filed by five Members of Parliament (MP) at a Sekondi High Court against the state, praying the court to stop the investors (Lonrho Ports Limited and Atuabo Freeport Ghana Limited) from going ahead with the US$600 million project. Consequently, the national leadership of MDU will meet tomorrow, where the issue will be tabled for discussion and decision taken. Chairman of MDU, Mr David Songotu disclosed this to The Finder in an exclusive interview. The case, which was filed at the Sekondi High Court on August 14, 2014, has Atuabo Freeport Ghana Limited as an interested party. The plaintiffs are Kwaku Kwarteng, the New Patriotic Party (NPP) MP for Obuasi West; Kwabena Okyere Darko-Mensah, NPP MP for Takoradi; Joseph Cudjoe, NPP MP for Efia; Mavis Hawa Koomson, NPP MP for Awutu Senya East; and Kofi Brako, NPP MP for Tema Central. Mr Songotu explained that under no circumstance should government allow a private individual, especially foreigners, to build and operate ports in the country. He explained that allowing private individuals, especially foreigners, to control an entry point amounts to handing over the nation�s sovereignty to foreigners. According to him, the proposed Lonrho project, and for that matter any project that allows private individuals, especially foreigners, to build and operate ports, will have dire national security implications for the nation. Mr Songotu said MDU was opposed to the agreement because of the dangers that are involved in allowing the private hands to construct and giving the private entity the exclusivity to the whole of the Western Region. For example, he said that would allow all kinds of things, including drugs and weapons, to flood the country. Mr Songotu explained that the right thing to do will be for Lonrho Ports Limited and Atuabo Freeport Ghana Limited to negotiate with the Ghana Ports and Harbours Authority (GPHA) for permission to build a terminal for oil and gas under the control of GPHA. He asked government to abrogate its contract with Lonrho Ports Ltd for the Atuabo Freeport project since the terms breach the laws of Ghana and gives Lonrho Ports Limited too many benefits. According to him, the contract gives Lonrho Ports Ltd exclusive rights to provide �specialised services� for the oil and gas industry in the Western Region, and this breaches PNDC Law 160 of 1986. Under section 5 (1) of the PNDC Law 160 of 1986, it is only the GPHA which is authorised to plan, build, develop, manage, maintain, operate and control ports. Under the agreement, Lonrho Ports, a 100% subsidiary of Lonrho Plc, is to develop a new, dedicated oil services terminal at Atuabo in the Western Region. The agreement gives Lonrho the exclusive rights to operate the Freeport with tax exemption for 25 years, with further rights for another 25-year extension. He described the proposed project as pure capital flight which makes government�s investments in Takoradi Port a waste of money. Government has already given sovereign guarantees for loans for the expansion of the Takoradi Port and critics of the Lonrho deal say the Freeport contract will render the port unprofitable. On Thursday, July 17, 2014, Parliament gave its approval to the Ghana Oil and Gas Freeport Project Commercial Agreement amidst heated debate. Mr Songotu expressed disappointment in Parliament for approving the deal against the presentation of MDU to the Joint Committee of Finance and Road and Transport. Takoradi Port Built in 1928, the Takoradi Port had facilitated much of the country�s international trade by serving as the main port for some of the country�s resources, which included manganese, bauxite, cocoa, timber and other agro-forestry products. The government is investing �197 million into expanding the Takoradi Port to position it to handle oil and gas transactions. The expansion work involves dredging the duct by 11.6 metres and extension of the breakwaters by 1.75 metres northwards, construction of bulk jetty, creation of berths, as well as the construction of two major dual carriage roads to link the port. The first dual carriage will start from the port to the harbour roundabout while the second will start from Gate 10 through New Takoradi to Danquah roundabout, to ease traffic in and around the port. There will be other road network linking the port to Nkotompo and Sekondi. Other facilities to be constructed included Inland Container Depot at Nkotompo, silos to store marine diesel, base oil, as well as oil service terminals, reclamation of land area of 350 hectares and dredging of an access channel. The dredging will ensure single handling of cargoes to reduce cost of doing business whilst there would be sufficient space for other equipment needed for the oil and gas sector. Jan-De-Nul from Belgium is responsible for the extension of the breakwater, the bulk jetty, dredging, as well as backfilling, estimated at ₵197 million, whilst China Harbour Construction would construct the dual carriage roads, as well as stuffing of the log pond at an estimated cost of US$150 million. Upon completion, manganese, bauxite and other bulk cargo operations will be transferred to a new dedicated jetty. The expansion will also free the existing manganese terminal for the increasing demand of other stakeholders in the shipping sectors. Atuabo Freeport Ghana Limited The project would deliver an airstrip and a helipad to facilitate aircraft and helicopter transportation, as well as other infrastructure like power generation, boreholes, accommodation, offices, a naval base, hydrocarbon fuel storage area and roads. Other components include service facilities to be located in the port along the quays to provide support services to the off-shore oil and gas industry, including rig repair, waste treatment and management, fabrication and supply facilities. Clause 3 of the said agreement grants the Interested Party the right, among other rights, to develop a Freeport, build berths at the Freeport, develop Freeport facilities and render services such as berthing, stevedoring, master porterage, pilotage, lighterage services and provide services which the Interested Party deems relevant for the operation of the Freeport in the Western Region of the country. Clause 7 of the Ghana Oil and Gas Freeport Project Commercial Agreement reads as follows: "7. Sole Rights in Western Region: 7.1 Absolute and sole rights Subject to Clauses 7.1.2 and 7.2 (Port of Takoradi Oil and Gas Operations), the GoG confirms that: 7.1.1 the rights granted to the Developer pursuant to Clause 3 (Grant of Rights) of this Agreement shall be the absolute and sole rights of the Developer in respect of the entire Western Region (including the right to undertake additional Projects, which shall however be the absolute and sole rights of the Developer in respect of the Site only) commencing on the Signing Date and expiring on the expiry of the Initial Debt Tenor (the "Development Rights"); 7.1.2 the GoG shall not, and shall procure that no Relevant Authority shall, grant any concession agreement or other agreement similar to this Agreement, or any Consent or rights containing the same or similar rights as the Development Rights to any third party in respect of the Western Region at any time between the Signing Date and the expiry of the Initial Debt Tenor of the proposed project financing of the Project: (i) without the express written consent of the Developer.