Ada Songor: Gov’t Pays GHC1, 250,000 Ground Rent To The People Of Ada

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Electrochem Ghana Limited, a wholly-owned Ghanaian company developing the Ada Songor Lagoon has succeeded in its efforts to making government pay GHC1, 250,000 AS ground rent to the people of Ada.

It is a fact that land acquisition for any purpose has been difficult in many parts of the world including Ghana and this situation is worst when it comes to acquiring land for mining and other commercial activities, apart from paying to obtain the land for a certain period, one also pays compensation for any property of commercial or culturally value.

Annual ground rents are also paid to institutions and landowners.

It is in the light of this that Electrochem Ghana Limited, after securing a concession of 41,000 acres at Ada Songor to produce 1,000,000 metric tons of salt per annum to supply to local and export markets, has worked out modalities amid payment of relevant taxes and royalties to government, got government to pay Ground Rent to the people of Ada.

This is the first in the history of Ghana that a government has paid ground rent to the people of Ada.

Information gathered indicate that the people of Ada have received the said amount with the promise that all other royalties will soon follow.

Indeed, some concerns have earlier been raised about the leasing of the concession to Electrochem Ghana Limited, in connection with the benefits to the local people at Ada.

Electrochem Ghana Limited has over the period made it clear that the interest of the people has been factored in the arrangements and the benefits indigenes of Ada stand to gain from the agreement with Electrochem Ghana limited over the songhor salt project is enormous.

The payment of the Ground Rent, which is the first of its kind in the history of Ada, is a testament of Electrochem’s position on creating wealth and making life better for the people.

Meanwhile, some experts who spoke to this paper on the matter lauded Electrochem for the efforts and explained that Ground rent is essential because it serves as source of periodic incomes to landowners even after they have transferred the land to others.

They averred that, when ground rents are properly managed, it could be a great source of economic stability for landowners since market interest rates may have influence on the rents if periodic reviews were agreed as part of the lease.

To the leaseholder, it is a guarantee of once ownership of the leasehold interest obtained. Paying ground rent on time to lessors could be a good evidence of one’s ownership of the property in the event of land dispute.

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