News:
November 2, 2014
Energy Minister, Boakye Agyako has suggested to Parliament’s Mines and Energy Committee that Ghana will be better off if the Africa and Middle East Resources Investment group LIc (AMERI) Energy deal is abrogated because the previous NDC government failed to follow due process.
He suggested that the financial and economic implications of the contract on the country will be far better should the deal be cancelled rather than maintaining it in its current state but the NPP government will however consider available options before making a final determination.
The Minister also noted that combined efforts of local Independent Power Producers (IPPs) such as Sunnon Asogli could have generated a total of 560MV of power as compared to 230 MV that Amery Energy produces if they were supported.
Mr. Boakye Agyarko who made these claims when he testified before the Mines and Energy Committee of Parliament on Tuesday has therefore urged Parliament to review terms of the controversial $ 510 million AMERI power deal.
The Committee meeting was part of discussions on a motion that Parliament rescinds its decision to approve the Build, Own, Operate and Transfer Agreement between the Government of the Republic of Ghana and Africa and Middle East Resources Investment Group LIc (Amery Energy) for the installation of ten (10) GE TM2,500+ aero derivatives gas turbines, operate, maintain, transfer and provision of support services that the House took on March, 20 2015 for reasons of gross misrepresentation.
According to the Energy Minister just after Parliament ratified the deal in August 2015, some agreed terms of the contract were changedby government without recourse to parliamentary approval, for instance the replacement of APR energy who where original partners to the contract to PPR, a Turkish firm.
He described the Amery Power deal as lopsided, overpriced transaction which does not serve the interest of the country.
Mr. Agyarko said the cost of abrogating sections of the deal would be $ 580 million but if maintained cost of capacity charge would be $ 680 million for 13 years and suggested that one year of excess liability would cancel the cost of abrogation.
He however assured government would do cost benefit analysis of all options available based on the establishment of fraud, malfeasance and possibly push a case of annulment of the deal.
By Christian Kpesese /ghanamps.com