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General News of Monday, 27 March 2017


FULL TEXT: Report on AMERI Power Purchasing Agreement

The AMERI Power Purchase Agreement was to add 300 MW of power to the national grid The AMERI Power Purchase Agreement was to add 300 MW of power to the national grid

It was a deal many believed had the potential to bring an end to a power crisis that had lingered for years.

It was one like no other, considering the several that had already been put on the table following countless promises by government officials to fix the problem that had led to the collapse of several businesses.

The AMERI Power Purchasing agreement was projected by the then NDC government as one of the deals that would bring to an end a power crisis that had lasted for almost three years.

It was to provide an additional 300MW of emergency power to fix the then debilitating energy crisis. But much as many were keen on seeing the deal materialize (considering the frustration 'dumsor' had created), concerns about the cost of the project remained a significant threat to the execution of the deal.

Institutions such as the Africa Center for Energy Policy described the $138 million project as a 'stinking deal' that needed to be suspended. The then minority in parliament also raised questions with the deal suggesting it was not one that provided value for money.

According to the concerns, the amount the Government of Ghana was to pay for the 300 MW of power was much more than what prevailed on the market.

Following the coming into office of the new NPP administration, Energy minister, Boakye Agyarko decided to set up a committee to conduct a value for money assessment on the deal which many in the opposition NDC believe played a significant role in the stabilization of the country's power situation.

A 17-member committee chaired by Philip Addison and tasked by Energy Minister Boakye Agyarko to study the deal, revealed that the AMERI PPA was inflated by $150million by the Mahama administration.

The deal was for the supply of gas turbines to Ghana, which were to provide additional power to the national grid to ease the biting load shedding exercise that plagued the country at the time.

The committee has recommended to the government to recall owners of the Dubai-based company for renegotiation, or better still, terminate the contract entirely.

Read the full report presented by the 17-member committee here.