An International Project Agreement (IPA) that sets out the commercial and regulatory structure of the West African Gas Pipeline Project (WAGP) has been signed in the Beninois capital, Cotonou. It was signed by the West African Gas Pipeline Company Limited WAPCO), a natural gas pipeline company formed by the WAGP Development Consortium, and the ministers of energy of the four states that are to benefit from the project - Ghana, Nigeria, Togo and Benin.

The Consortium comprises of the Volta River Authority, Chevron (Nigeria) Limited, Nigeria National Petroleum Corporation and Shell Petroleum Development Company of Nigeria.

The signing confirms that the states would continue to create the right environment for future regional economic growth and WAPCO's investor confidence in the sub-region.

The IPA establishes a comprehensive and harmonised investment regime within which the pipeline is expected to operate effectively as a single business entity across the four project states.

The WAGP would enable customers in Ghana, Benin and Togo to have access natural gas from Nigeria's gas reserve of 160 trillion cubic feet, as fuel for power generation and industrial development.

The signing of the Agreement comes four months after the signing of the WAGP Treaty at the ECOWAS Summit in Dakar, Senegal, constituting a significant step in fulfilling conditions to reach the final investment decision for pipeline construction by the Consortium.

The project would ensure a source of secure, clean and reliable energy for West Africa and provide a foundation for regional economic growth and development.

The IPA, according to Mar Dennis Fahy, Managing Director of WAPCO, represented the single most important contract between WAGP Development Consortium and the four states. It has been prepared, negotiated and finalised by the two parties after extensive discussions with a wide range of stakeholders with technical assistance from the USAID.

Mr. Fahy said the next three months would involve ratification of the WAGP Treaty and the enactment of the Legislation that would give effect to the IPA and the Treaty by the Parliamentarians of the four participating nations. He said that, subject to achieving satisfactory commercial and permitting conditions, WAPCO expected that Final Investment Decision would be made by the end of the year and first gas deliveries by June 2005.

Ms Sharon Cromer, USAID Director in Ghana, congratulated all those who had brought the Project this far saying, USAID was initially to support the Project for just a year, "but four years on, we are still here, because it is one of the wisest investments by the US government in recent times and I promise that the US government will give its support till the project is done."

She congratulated Mr. Fred Ohene-Kena, the former Minister of Energy, who made the initial request for USAID assistance and is responsible for the US government's participation in the undertaking.

Others are Dr Frank Young, former USAID Director in Ghana, Dr Frank Offei and Mr Albert Kan-Dapaah, another former Energy Minister and his Beninois counterpart, Karamou Fassasi.