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Business News of Tuesday, 18 April 2017

Source: Citifmonline.com

We’ve cancelled 20 power deals – Bawumia

Vice president, Dr. Mahamudu Bawumia, has disclosed that government has abrogated about 20 power purchase agreements signed by the erstwhile Mahama government.
According to him, this has saved the country a whopping $300 million.

“We have saved the country $300 million by reviewing and prioritizing the existing power purchasing agreements. We’ve essentially cancelled about 20 of them, we’ve asked four of them to go ahead and the rest to delay by two or three years and in so doing, we have managed to reduce government’s liabilities,” he noted.

The Akufo-Addo government had argued that some of the power agreements the Mahama government entered into were bloated, and were not value for money.
They complained that, the Ameri Power deal was bloated by about $150 million, and have threatened to review the agreement.

Speaking on Monday at a Joy FM Town Hall meeting, Dr. Bawumia added that, government has secured financing for two major electrification projects, which would extend electricity to over 800 communities when implemented.

He also stated that, they further intend to put government buildings on solar plants instead of piling up debts for government.

“We have in the energy sector taken some major decisions. Anyone who is coming to produce power in Ghana and says we want a power purchase agreement, we are saying that you cannot charge us more than ten cents per kilowatt hour.

'We’ve also secured financing for two major electrification projects, the Hunan and China projects, and this when implemented, will extend electricity to over 800 communities' the Vice President added.