Ex-CHRAJ boss and Vitus Azeem Shred Addison’s AMERI probe

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Ibn Abudu ,NPP founding member 7 years ago

No body can tarnish the image of the policies of Nana Akuffo Addo.

The complete separation of powers are paramount in the good working of the judiciary, legislative , executive arms of governments to enable the full implem ...
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No body can tarnish the image of the policies of Nana Akuffo Addo.

The complete separation of powers are paramount in the good working of the judiciary, legislative , executive arms of governments to enable the full implementation of habeas corpus , as such even though there might or was no malicious intentions, the ethnical bar was too low.

As such parliament must call for a full investigation to exonerate the Addision - Ameri sponsorship to Dubai probe.
ATSUKUOR TEI-WAYO 7 years ago

HAS GHANAWEB RAN SHORT OF CREDIBLE AND CURRENT NEWS ITEMS? THIS MEWS IS BOGUS AND OLD. NDC PROBABLY PAYING TO HAVE IT FEATURED OVER AND OVER. SHAME.

HAS GHANAWEB RAN SHORT OF CREDIBLE AND CURRENT NEWS ITEMS? THIS MEWS IS BOGUS AND OLD. NDC PROBABLY PAYING TO HAVE IT FEATURED OVER AND OVER. SHAME.
PRINCE KWASI ADADE (OFIE P33) 7 years ago

IF IT HAD BEEN NDC, THE TRIP OF THE ADDISON COMMISSION TO DUBAI WOULD HAVE COST GHANA BILLIONS OF DOLLARS BECAUSE NDC CREATE, THEY LOOT AND THEY SHARE. NPP TOO SMART, THEY GOT AMERI CROOKS TO PAY. THE MOST REMARKABLE THING IS ...
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IF IT HAD BEEN NDC, THE TRIP OF THE ADDISON COMMISSION TO DUBAI WOULD HAVE COST GHANA BILLIONS OF DOLLARS BECAUSE NDC CREATE, THEY LOOT AND THEY SHARE. NPP TOO SMART, THEY GOT AMERI CROOKS TO PAY. THE MOST REMARKABLE THING IS THAT THEY MANAGED TO UNCOVER THE 150 MILLION DOLLAR NDC FRAUD.
Zoobie-Zoobie 7 years ago

ask the dumb attorney general

ask the dumb attorney general
Stormborn 7 years ago

Hey dude/babe. Good day! Think about it - 4 whole months gone! 4 months!!! If you can, why not? If I told U each 5 mins, U have the potential to pick at least N5000 ($15) from a walk-in customer for that smartphone or tablet ...
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Hey dude/babe. Good day! Think about it - 4 whole months gone! 4 months!!! If you can, why not? If I told U each 5 mins, U have the potential to pick at least N5000 ($15) from a walk-in customer for that smartphone or tablet fix, will U still be home idle? Very common and true with this business! Learn today. Get " Mobile Phones & Tablets Repairs : A Complete Guide for Beginners and Professionals " from Amazon marketplaces, Barnes & Noble, eBay etc. Sure bet!
Prof Lungu 7 years ago

READ: "...it was wrong for the 17-member "investigation" committee to travel to Dubai under the sponsorship of AMERI...".

WE SAY: A mighty big conflict of interest, and then some. That committee has damaged their credibili ...
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READ: "...it was wrong for the 17-member "investigation" committee to travel to Dubai under the sponsorship of AMERI...".

WE SAY: A mighty big conflict of interest, and then some. That committee has damaged their credibility beyond measure.
Enyo 7 years ago

The NDC does not understand what conflict of interest means. By the way, why have they become the mouthpiece of AMERI all of a sudden? Can't AMERI fight it's own fight? I guess the $150mil was not chopped by AMERI alone ala ...
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The NDC does not understand what conflict of interest means. By the way, why have they become the mouthpiece of AMERI all of a sudden? Can't AMERI fight it's own fight? I guess the $150mil was not chopped by AMERI alone ala Woyome. Shameless people
ghanian 7 years ago

may God forgive you.

may God forgive you.
Osei Mensah 7 years ago

NPPigs are evil! They are not there for governance. They know they dont actually have anything to offer so what want to do is finding fault from the previous administration even if there is none to cover up their cluelessness ...
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NPPigs are evil! They are not there for governance. They know they dont actually have anything to offer so what want to do is finding fault from the previous administration even if there is none to cover up their cluelessness, incompetence and failure.
Ghanaian 7 years ago

OSEI MENSAH, I AM NOT SURPRISED BY YOUR COMMENT. FOR IN EVERY TOWN, WE HAVE A MENSAH IN IT, SO GOES THE POPULAR SAYING. CONTINUE TO LIVE IN YOUR STUPIDITY. YOUR ODWANFUNU MAHAMA IS GONE FOR EVER, GHANAIANS WILL NEVER HAND OVE ...
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OSEI MENSAH, I AM NOT SURPRISED BY YOUR COMMENT. FOR IN EVERY TOWN, WE HAVE A MENSAH IN IT, SO GOES THE POPULAR SAYING. CONTINUE TO LIVE IN YOUR STUPIDITY. YOUR ODWANFUNU MAHAMA IS GONE FOR EVER, GHANAIANS WILL NEVER HAND OVER THE COUNTRY TO SUCH AN IDIOT AGAIN. YES, IN YOUR VIEW NPP ARE A BUNCH OF INCOMPETENT, CLUELESS PEOPLE IN GOVERNMENT. CAN YOU TELL OR RECONCILE WITH YOURSELF HOW THE COMPETENT, INCORRUPTIBLE, BEST SET OF PEOPLE WERE BOOTED OUT OF POWER. AND SO THE MILLIONS THAT MADE THIS CHANGE WERE ALL WRONG! YOU MUST BE SUCH AN IDIOT TO HAVE A HEAD ON YOUR BODY.
slyster 7 years ago

I feel sorry for the human being that gave birth to you.

I feel sorry for the human being that gave birth to you.
Yaw 7 years ago

The conflict of interest in this case is only in theory. The stinky deal wasn't signed by the current government. The committee set up by the current government is investigating whether something that potentially vitiates the ...
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The conflict of interest in this case is only in theory. The stinky deal wasn't signed by the current government. The committee set up by the current government is investigating whether something that potentially vitiates the contract exists or whether there was value for money analysis done by the previous administration.

So are those questioning the expense paid by Ameri saying that, it will influence the investigation? In what way? The government believes the deal, wasn't done with the interest of the country in mind? They stridently campaign against that. That's why the government initiated the investigation. So what's going to be the motivation to whitewash the investigation? There's no logic in it.
TWEAA dc 7 years ago

GHANAIANS CAN TALK WHEN GIVEN THE CHANCE.....THE BOTTOM LINE IS THE AMERI DEAL WAS AND IS OVERPRICED....SIMPLE.....KWABENA DONKOR..KOFI BUAH...AND ANYBODY FOR THAT MATTER WILL VOMIT THE 150 MILLION DIFFERENCE IF FOUND TO BE H ...
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GHANAIANS CAN TALK WHEN GIVEN THE CHANCE.....THE BOTTOM LINE IS THE AMERI DEAL WAS AND IS OVERPRICED....SIMPLE.....KWABENA DONKOR..KOFI BUAH...AND ANYBODY FOR THAT MATTER WILL VOMIT THE 150 MILLION DIFFERENCE IF FOUND TO BE HAVE BENEFITED FROM THE DEAL.....CALL THE AMERI SPONSORED TRIP TO.DUBAI WHATEVER NAME YOU LIKE.....VITUS AZEEM CANNOT STOP ANYBODY FROM PROBING THE AMERI DEAL....TWEAAAA..NO WAY.
KALI 7 years ago

CRIMINALS INVESTIGATING CRIMINALS.

CRIMINALS INVESTIGATING CRIMINALS.
Keane 7 years ago

.

It's simple 1) pure conflict of interest and pure colorisation 2/ it's simple just read Full story on Norwegian newspaper Verdens Gang ....itscall their again PURE corruption and bribery ...foolish shameful MDC . after b ...
read full comment

.

It's simple 1) pure conflict of interest and pure colorisation 2/ it's simple just read Full story on Norwegian newspaper Verdens Gang ....itscall their again PURE corruption and bribery ...foolish shameful MDC . after bribing everyone to go on a visit to review the contract ....one minute going to negotiate now no negotiate ........they set the company up to SCREW Ghana the world is laughing at Ghana ...how many other multi million dollar contracts have AMERI ACHIEVED...ZERO how many other contracts has that crook His Royal Highness Sheikh Ahmed Bin Dalmook Al Maktoum, received a deal of $150 million commission ZERO ... why did the witness a known crook UMAR FAROOQ ZAHOOR witness contract then they say no no no he is not the crook he is s different man then a few days later he is removed ftom web site and resigned for personal reasons . Full story on Norwegian newspaper Verdens Gang (VG so corrupt bribery greedy NDC just screwed Ghana so CONTRACT is a FRAUD GET them all arrested for loss to state ...if nothing happens then NPP HAS ACCEPTED A BRIBE TO shut up? Now they have paid the committee hotels expenses and flights to investigate ....conflict of interest!!! (More bribes) apart from all the other going on from that EVIL corrupt ex president mahama (agreeing to a power project costing $300million more than any other project in the world EVER $900 million 400mw by executive instrument -industry standard $600m)the contract reads if AMERI do not like the government or whatever they can MAKE the government BUY the project ....so that's $300 million more than ANY other similar projects in the world ...TOTAL CORRUPTION TOTAL DISGRACE..100% within a few years they will attempt that clause as the project does not work $900million at one minute 12 cents then 14.5 cents per pkh for power (400mw at $600million oh dear Ghana ....EVERY ONE INVOLVED IN BRIBE-corruption PAST AND PRESENT WATCH THEM TALK RUBBISH TO CLOSE THE CONVERSATION DOWN

Source imani-
Friends, do not take the silence of AMERI’s supporters on this platform and in the open media to mean aloofness or nonchalance.
They have been hard at work, especially on WhatsApp and in private briefings, doing all they can to discredit IMANI’s campaign to persuade the public to view the deal as the “greatest swindle of the Ghanaian state in at least two decades”.
Since our responses have been fragmented across different posts, discussion threads, and ripostes across multiple platforms, we have been advised to assemble them all in one place in order to vindicate our campaign. We now have the pleasure and duty to proceed to do so.
Let us take just the main arguments that are being canvassed by pro-AMERI activists.
They have said that IMANI’s analysis of the financial terms of the deal is shallow because it assumes that such a deal can only be assessed in one way, when in fact different methods can show that it is a very fair deal.
IMANI is underestimating the cost of installing the turbines and exaggerating the profits made by the middle-men (brokers) because it does not understand IRR, NPV, and Discount Rate analysis, they insist.
How do we plead to this charge? Firstly, no one, at least, disputes the cost of the TM2500+ mobile aeroderivative gas turbines that were bought (in actual fact, the TM2500+ is the composite ‘power plant in the box’; the turbine itself in that box is the LM2500 aeroderivative engine).
And that is because no one can. Right there in Annex A to the agreement, its supplier and specifications are fully provided. The machine was acquired from APR, a recommended supplier of GE, by the brokers. APR openly lists the price of these machines. There is thus no dispute that the machines together cost $220 Million, and most likely less if bought in bulk.
As to why Ghana had to go to AMERI for AMERI to go to METKA for METKA to go to APR in order to acquire GE equipment, let’s leave that aside for now. Anybody with the most basic training knows that if something costs $22 million each and you want to acquire ten of them you would normally be entitled to a discount.
You can prove the point by walking to Kingdom Stationery and ordering 10 workstations at a go. I assure you a 15% discount off the catalogue price would be yours, but let’s even assume that the original procurers were obtuse enough to pay $220 million.
(Indeed in the World Energy Outlook database, per MW capital cost for gas turbine power is $500,000, so the $900,000 implied by the catalog price is precisely what you expect to see at catalogue price level, but let’s not over-flog the point.)
The $220 million is the engineering cost. Everyone knows that even if a machine, such as this one, has been designed as turnkey (literally, buy today, turn the key, and voila it starts working) one still need specialists to install, test and then commission it.
One also needs to plug it into whatever network is supposed to receive the output the machine generates. Also if somebody buys something on your behalf they deserve to be paid what in Ghana is called T&T.
Note however that in this case, unlike the case in a normal power plant, all that was needed was to integrate the turbines with the national grid equipment.
In fact, GE offers to install the machines for you in eleven days or even three days if as a user you don’t need a test run! You don’t have to have more than a JHS education to understand that what we are talking about here is not the building of Akosombo dam and township.
It is literally assembling a bunch of gizmos for cooling, firing up, and transmission of the generated power into the national grid.
As far as the transformers, civil works, utilities and sewers/tubing/tunnelling are concerned, Government of Ghana was responsible for bearing that cost. Supposing you bought a generator plant for installing in your factory for $22,000.
How much will you pay to install it? In Ghana’s case, continuing this analogy, we paid $14,000 because somehow we felt that even that part of the project should be handled by someone else and be billed as additional. But that is not even the main quarrel here.
Many anti-AMERI activists are not even taking the deal makers to task for paying $140 million on top of the $220 million to install a plant that from our analysis of several deals involving a EPC contractor cost of procurement, installation and commissioning almost never cross 10% of the total cost.
We are tearing our hair out because the government then went ahead and paid AN ADDITIONAL $150 million on top of things, citing something called ‘NPV analysis’ and ‘Balance of Plant’.
Yet, all one has to do is take a look at Annex E of the agreement and it is clear that the main core of this ‘balance’ that needs to be added to the turbines for the system to be complete and operational comprises merely of the exhaust module, the air intake nozzles and the data logging platform in the control room, all of these being assembly units clearly stated as standard and pre-packaged with the turbines!
All that is required, external to the weatherproof package and its trailer mounts, and in lieu of a complex structure, is the piping for coolant and fuel filtration and transmission.
So the “balance of plant” essentially refers to the fuel and coolant (‘demineralised water’) storage and dispensing system/controls that can be acquired for a few hundreds of thousands of dollars; and the earthing and electrical cabling works.
We are not talking here about giant buildings; or treatment systems; fire control was provided; ventilation is integrated, as is instrumentation; and security and fuel logistics handling is minimal because the plant is housed at the existing Takoradi Thermal Power station and shares its facilities.
And at any rate, the government of Ghana was billed separately for civil works, drainage and sewerage etc! So what serious ‘balance of plant’ are we talking about here exactly?
For a project that the manufacturer of the system says can take between 3 and eleven days from start to finish, we decided that for the work done in acquiring the plants and installing them (EPC), we will pay the brokers 65% of the total equipment cost due to our unwillingness to procure our own financing and then hire any EPC contractor for a few hundreds of thousands of dollars to commission the plants.
Anti-AMERI activists are willing to accept this $140 million dollar charge as pure financing costs (since the engineering, procurement, construction and commissioning activities in this project are hardly of serious note).
And had we left things there, the NPV analysis using an 8% discounting rate would have netted a decent aggregate profit of $72 million cool profit for the dealmakers, showing a 32% return in 5 years. Indeed, readers are welcome to take a look at how reasonable this rate of return is in a period of serious constraint in the energy plant financing industry. It is important to bear in mind when reviewing these calculations that cashflow from the investment is assured on a monthly basis; a graduated interest rate structure is required to fully appreciate the fixed cashflow; AMERI sought and secured exemptions from ALL domestic taxes in relation to the project; we are in a period of unprecedented low global interest rates; and there is a standby letter of credit to cover any defaults under every conceivable scenario in the one-sided agreement that was foisted on the Government of Ghana. AMERI enjoyed all of this PLUS a Performance Bond too (yes).
In fact, under the agreement, AMERI gets paid whether or not fuel from the government to produce electricity is forthcoming, and regardless of faults in the national grid.
It is easy to see how generous the deal at this level would have been when one benchmark against reference data globally.
The discount rate in Turkey itself is 5.25%. But the Ghanaian dealmakers felt that such prudence would not earn them any applause for being spectacular. So they upped the ante, and agreed to an additional $150 million on top of this for AMERI.
The party that did not procure the equipment, install a pipe, or turn even a valve on, but rode on the back of METKA and APR to secure the equipment and on PPL and Engineers & Planners to install and turn it on, gets a cool $122 million in NPV terms just for having swag! Frankly, that is where NPV analysis leads us.
And it sure as night follows day exonerates no one. In fact if we use as the discounting rate the cost of borrowing in the local USD credit market and compute the NPV of the margin for AMERI on the deal (relying on our generous EPC project value of $250 million), we get exactly $150 million! That is precisely the amount we overpaid if we measure against the alternative of borrowing from a consortium of local banks to buy the plant outright and getting the authorised supplier, APR, to install and commission. Any which way pro-AMERI analysts dice this, a $150 million loss cannot be argued away. For further clarity, see below a table providing comparative lending rates for various projects in the energy sector. But pro-AMERI analysts seem to believe that they have one ace up their sleeves. In some of the briefings, we have seen the argument appears to be that AMERI is producing cheap power and that cannot be the case if the capital cost of the plant is bloated (though as you can see from the other table attached, the capital cost is indeed the highest in Ghana). Fair point: how can an exorbitantly priced machine produce cheap trinkets? When some of us first heard this argument, frankly, we thought it was a joke. On top of selling the machines to Ghana at an exorbitant price and compelling us to provide fuel to power it, AMERI then went ahead and inserted a cool 0.5 US cents per kilowatt hour charge for the power that we shall be producing from equipment that we are paying for using fuel that we are supplying, netting them a neat $16.6 million a year! And though the agreement says that the plant gets handed over to the Government of Ghana if we keep up with all our payments, they still managed lock the power tariffs in the post-transfer period in an obvious ploy to ensure that even after handing the plant over to us they can still run the show (hence the efforts to get another plant at the Takoradi Power Station handed over to them). The combined tariff of 62 pesewas per kilowatt-hour that AMERI itself discloses in the agreement may be compared with the 2016 August Bulk Generation Charge that PURC has allowed other power plants in Ghana to charge on average: 35.97 pesewas! AMERI is thus, in fact, nearly 75% more expensive than the average power plant in Ghana. And we haven’t even factored in the cost of fuel. Consider that without a revision of the agreement, AMERI will be operating what is, in essence, a separate price-gouging regime in the country, in defiance of the PURC, that shall see Ghanaians paying almost twice for its power if we don’t act soon to shave off some of the $102 million a year it has managed to squeeze out of our diffident State. In view of all the foregoing analysis, IMANI’s simple view is that the Government of Ghana should not relent until it has managed to shave off two million dollars from each monthly payment. Duty calls on every Ghanaian to join this campaign
Keane 7 years ago

I's simple 1) pure conflict of interest and pure corruption 2/ just read Full story on Norwegian newspaper Verdens Gang ....again PURE corruption and bribery ...foolish shameful NDC . after bribing everyone to go on a visit t ...
read full comment

I's simple 1) pure conflict of interest and pure corruption 2/ just read Full story on Norwegian newspaper Verdens Gang ....again PURE corruption and bribery ...foolish shameful NDC . after bribing everyone to go on a visit to review the contract ....one minute going to negotiate now no negotiate ........they set the company up to SCREW Ghana the world is laughing at Ghana ...how many other multi million dollar contracts have AMERI ACHIEVED...ZERO how many other contracts has that crook His Royal Highness Sheikh Ahmed Bin Dalmook Al Maktoum, received a deal of $150 million commission ZERO ... why did the witness a known crook UMAR FAROOQ ZAHOOR witness contract then they say no no no he is not the crook he is s different man then a few days later he is removed ftom web site and resigned for personal reasons . Full story on Norwegian newspaper Verdens Gang (VG so corrupt bribery greedy NDC just screwed Ghana so CONTRACT is a FRAUD GET them all arrested for loss to state ...if nothing happens then NPP HAS ACCEPTED A BRIBE TO shut up? Now they have paid the committee hotels expenses and flights to investigate ....conflict of interest!!! (More bribes) apart from all the other going on from that EVIL corrupt ex president mahama (agreeing to a power project costing $300million more than any other project in the world EVER $900 million 400mw by executive instrument -industry standard $600m)the contract reads if AMERI do not like the government or whatever they can MAKE the government BUY the project ....so that's $300 million more than ANY other similar projects in the world ...TOTAL CORRUPTION TOTAL DISGRACE..100% within a few years they will attempt that clause as the project does not work $900million at one minute 12 cents then 14.5 cents per pkh for power (400mw at $600million oh dear Ghana ....EVERY ONE INVOLVED IN BRIBE-corruption PAST AND PRESENT WATCH THEM TALK RUBBISH TO CLOSE THE CONVERSATION DOWN

Source imani-
Friends, do not take the silence of AMERI’s supporters on this platform and in the open media to mean aloofness or nonchalance.
They have been hard at work, especially on WhatsApp and in private briefings, doing all they can to discredit IMANI’s campaign to persuade the public to view the deal as the “greatest swindle of the Ghanaian state in at least two decades”.
Since our responses have been fragmented across different posts, discussion threads, and ripostes across multiple platforms, we have been advised to assemble them all in one place in order to vindicate our campaign. We now have the pleasure and duty to proceed to do so.
Let us take just the main arguments that are being canvassed by pro-AMERI activists.
They have said that IMANI’s analysis of the financial terms of the deal is shallow because it assumes that such a deal can only be assessed in one way, when in fact different methods can show that it is a very fair deal.
IMANI is underestimating the cost of installing the turbines and exaggerating the profits made by the middle-men (brokers) because it does not understand IRR, NPV, and Discount Rate analysis, they insist.
How do we plead to this charge? Firstly, no one, at least, disputes the cost of the TM2500+ mobile aeroderivative gas turbines that were bought (in actual fact, the TM2500+ is the composite ‘power plant in the box’; the turbine itself in that box is the LM2500 aeroderivative engine).
And that is because no one can. Right there in Annex A to the agreement, its supplier and specifications are fully provided. The machine was acquired from APR, a recommended supplier of GE, by the brokers. APR openly lists the price of these machines. There is thus no dispute that the machines together cost $220 Million, and most likely less if bought in bulk.
As to why Ghana had to go to AMERI for AMERI to go to METKA for METKA to go to APR in order to acquire GE equipment, let’s leave that aside for now. Anybody with the most basic training knows that if something costs $22 million each and you want to acquire ten of them you would normally be entitled to a discount.
You can prove the point by walking to Kingdom Stationery and ordering 10 workstations at a go. I assure you a 15% discount off the catalogue price would be yours, but let’s even assume that the original procurers were obtuse enough to pay $220 million.
(Indeed in the World Energy Outlook database, per MW capital cost for gas turbine power is $500,000, so the $900,000 implied by the catalog price is precisely what you expect to see at catalogue price level, but let’s not over-flog the point.)
The $220 million is the engineering cost. Everyone knows that even if a machine, such as this one, has been designed as turnkey (literally, buy today, turn the key, and voila it starts working) one still need specialists to install, test and then commission it.
One also needs to plug it into whatever network is supposed to receive the output the machine generates. Also if somebody buys something on your behalf they deserve to be paid what in Ghana is called T&T.
Note however that in this case, unlike the case in a normal power plant, all that was needed was to integrate the turbines with the national grid equipment.
In fact, GE offers to install the machines for you in eleven days or even three days if as a user you don’t need a test run! You don’t have to have more than a JHS education to understand that what we are talking about here is not the building of Akosombo dam and township.
It is literally assembling a bunch of gizmos for cooling, firing up, and transmission of the generated power into the national grid.
As far as the transformers, civil works, utilities and sewers/tubing/tunnelling are concerned, Government of Ghana was responsible for bearing that cost. Supposing you bought a generator plant for installing in your factory for $22,000.
How much will you pay to install it? In Ghana’s case, continuing this analogy, we paid $14,000 because somehow we felt that even that part of the project should be handled by someone else and be billed as additional. But that is not even the main quarrel here.
Many anti-AMERI activists are not even taking the deal makers to task for paying $140 million on top of the $220 million to install a plant that from our analysis of several deals involving a EPC contractor cost of procurement, installation and commissioning almost never cross 10% of the total cost.
We are tearing our hair out because the government then went ahead and paid AN ADDITIONAL $150 million on top of things, citing something called ‘NPV analysis’ and ‘Balance of Plant’.
Yet, all one has to do is take a look at Annex E of the agreement and it is clear that the main core of this ‘balance’ that needs to be added to the turbines for the system to be complete and operational comprises merely of the exhaust module, the air intake nozzles and the data logging platform in the control room, all of these being assembly units clearly stated as standard and pre-packaged with the turbines!
All that is required, external to the weatherproof package and its trailer mounts, and in lieu of a complex structure, is the piping for coolant and fuel filtration and transmission.
So the “balance of plant” essentially refers to the fuel and coolant (‘demineralised water’) storage and dispensing system/controls that can be acquired for a few hundreds of thousands of dollars; and the earthing and electrical cabling works.
We are not talking here about giant buildings; or treatment systems; fire control was provided; ventilation is integrated, as is instrumentation; and security and fuel logistics handling is minimal because the plant is housed at the existing Takoradi Thermal Power station and shares its facilities.
And at any rate, the government of Ghana was billed separately for civil works, drainage and sewerage etc! So what serious ‘balance of plant’ are we talking about here exactly?
For a project that the manufacturer of the system says can take between 3 and eleven days from start to finish, we decided that for the work done in acquiring the plants and installing them (EPC), we will pay the brokers 65% of the total equipment cost due to our unwillingness to procure our own financing and then hire any EPC contractor for a few hundreds of thousands of dollars to commission the plants.
Anti-AMERI activists are willing to accept this $140 million dollar charge as pure financing costs (since the engineering, procurement, construction and commissioning activities in this project are hardly of serious note).
And had we left things there, the NPV analysis using an 8% discounting rate would have netted a decent aggregate profit of $72 million cool profit for the dealmakers, showing a 32% return in 5 years. Indeed, readers are welcome to take a look at how reasonable this rate of return is in a period of serious constraint in the energy plant financing industry. It is important to bear in mind when reviewing these calculations that cashflow from the investment is assured on a monthly basis; a graduated interest rate structure is required to fully appreciate the fixed cashflow; AMERI sought and secured exemptions from ALL domestic taxes in relation to the project; we are in a period of unprecedented low global interest rates; and there is a standby letter of credit to cover any defaults under every conceivable scenario in the one-sided agreement that was foisted on the Government of Ghana. AMERI enjoyed all of this PLUS a Performance Bond too (yes).
In fact, under the agreement, AMERI gets paid whether or not fuel from the government to produce electricity is forthcoming, and regardless of faults in the national grid.
It is easy to see how generous the deal at this level would have been when one benchmark against reference data globally.
The discount rate in Turkey itself is 5.25%. But the Ghanaian dealmakers felt that such prudence would not earn them any applause for being spectacular. So they upped the ante, and agreed to an additional $150 million on top of this for AMERI.
The party that did not procure the equipment, install a pipe, or turn even a valve on, but rode on the back of METKA and APR to secure the equipment and on PPL and Engineers & Planners to install and turn it on, gets a cool $122 million in NPV terms just for having swag! Frankly, that is where NPV analysis leads us.
And it sure as night follows day exonerates no one. In fact if we use as the discounting rate the cost of borrowing in the local USD credit market and compute the NPV of the margin for AMERI on the deal (relying on our generous EPC project value of $250 million), we get exactly $150 million! That is precisely the amount we overpaid if we measure against the alternative of borrowing from a consortium of local banks to buy the plant outright and getting the authorised supplier, APR, to install and commission. Any which way pro-AMERI analysts dice this, a $150 million loss cannot be argued away. For further clarity, see below a table providing comparative lending rates for various projects in the energy sector. But pro-AMERI analysts seem to believe that they have one ace up their sleeves. In some of the briefings, we have seen the argument appears to be that AMERI is producing cheap power and that cannot be the case if the capital cost of the plant is bloated (though as you can see from the other table attached, the capital cost is indeed the highest in Ghana). Fair point: how can an exorbitantly priced machine produce cheap trinkets? When some of us first heard this argument, frankly, we thought it was a joke. On top of selling the machines to Ghana at an exorbitant price and compelling us to provide fuel to power it, AMERI then went ahead and inserted a cool 0.5 US cents per kilowatt hour charge for the power that we shall be producing from equipment that we are paying for using fuel that we are supplying, netting them a neat $16.6 million a year! And though the agreement says that the plant gets handed over to the Government of Ghana if we keep up with all our payments, they still managed lock the power tariffs in the post-transfer period in an obvious ploy to ensure that even after handing the plant over to us they can still run the show (hence the efforts to get another plant at the Takoradi Power Station handed over to them). The combined tariff of 62 pesewas per kilowatt-hour that AMERI itself discloses in the agreement may be compared with the 2016 August Bulk Generation Charge that PURC has allowed other power plants in Ghana to charge on average: 35.97 pesewas! AMERI is thus, in fact, nearly 75% more expensive than the average power plant in Ghana. And we haven’t even factored in the cost of fuel. Consider that without a revision of the agreement, AMERI will be operating what is, in essence, a separate price-gouging regime in the country, in defiance of the PURC, that shall see Ghanaians paying almost twice for its power if we don’t act soon to shave off some of the $102 million a year it has managed to squeeze out of our diffident State. In view of all the foregoing analysis, IMANI’s simple view is that the Government of Ghana should not relent until it has managed to shave off two million dollars from each monthly payment. Duty calls on every Ghanaian to join this campaign
Yaw 7 years ago

The addison committee should go tell this to the marines. How can you allow somebody that you are investigating buy air ticket for you, feed and accommodate you to investigate him or her . Even angels will fall, how much more ...
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The addison committee should go tell this to the marines. How can you allow somebody that you are investigating buy air ticket for you, feed and accommodate you to investigate him or her . Even angels will fall, how much more politicians.
Yussif 7 years ago

We always want to pretend about how decent we re as Ghanaian leaders,the ndc I think should not come near political power soon,look this re the very people who entered the corrupt and bad deal in the first place,the contract ...
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We always want to pretend about how decent we re as Ghanaian leaders,the ndc I think should not come near political power soon,look this re the very people who entered the corrupt and bad deal in the first place,the contract is still valid,a new government has detected so wrongs in the contract and in proposing a renegotiation Ameri obliged to sit with government and said look we ll foot your travel cost for us to talk and you ve learned persons like Mr Short talking this way.Is he saying that once Ameri pays tickets for the matter to be discussed it mean all the writings in the agreement ll disappear?so assuming they did not reach a consensus on the matter,does it mean because they paid air tickets we can't take them to court?dont forget Ameri could've refuse to renegotiate or tell Ghana government to go to court,it can drag for years,the primary concern was to get them to reduce and they did.So stop pretending to holy as leaders because when the deal was signed some people became so rich,someone called gh25 million as mere as a local company who clear the site for work to begin and even said no contractor in Ghana was willing to undertake that contract for the money,Ibrahim mahama has really ridicule Ghanaians,but he lives to regret this.
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Akonta 7 years ago

Justice Emile Short is an NDC stooge. He has never said anything good about NPP. What did he do during his term in office apart from pampering NDC govt. He should leave NPP alone.

Justice Emile Short is an NDC stooge. He has never said anything good about NPP. What did he do during his term in office apart from pampering NDC govt. He should leave NPP alone.
JTETTY 7 years ago

CHRAJ to investigate Addison's committee for a charge of conflicts of interest as raised by minority group in parliament could be a waste of time. I seemed Addison's committee did not require a trip to Dubai to complete to fi ...
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CHRAJ to investigate Addison's committee for a charge of conflicts of interest as raised by minority group in parliament could be a waste of time. I seemed Addison's committee did not require a trip to Dubai to complete to finalise their investigation. However as the article read , it was AMERI officials who insisted Addison's committee should take a trip to Dubai before conclusion is drawn on the investigation. In my opinion the invitation of Addison's committee to Dubai by AMERR has not influenced the findings of Addison's committee for overpayments of USD 150 mill on the deal effected by the Mahama -led administration. Addison's committee has maintained their conclusion and therefore the trip to Dubai wasn't necessary. The claim of minority group calling for CHRAJ for a probe in the matter could be a waste of resources. Minority group in Parliament are too desperate after been in opposition 3 months ago making haste decisions without seeking second thoughts and that's alarming.
Mr Bond 7 years ago

I can't believe that thinking intelligent people could not criticize criminals whose actions dole out $150 million to AMERI but rather find fault shred exposing criminality report because they like it dole money and turn arou ...
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I can't believe that thinking intelligent people could not criticize criminals whose actions dole out $150 million to AMERI but rather find fault shred exposing criminality report because they like it dole money and turn around begging for aid while they starve school kids.
Citizen 7 years ago

The ignorance of the educated is lack of wisdom. The Addison committee invited AMERI to Ghana.AMERI pleaded 'they could not assemble their team for the trip to Ghana and offered to foot the Ghanaian delegation for the importa ...
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The ignorance of the educated is lack of wisdom. The Addison committee invited AMERI to Ghana.AMERI pleaded 'they could not assemble their team for the trip to Ghana and offered to foot the Ghanaian delegation for the important meeting.This coming from AMERI can never compromise the Addison fact finding committee. Afterall most details of the AMERI deal are publc breakfast lunch and supper.
Kwasi Ajin 7 years ago

NPP /NDC are not in to save our nation from corruption. These two parties are full of criminals in a disguise of politicians,sharp teeth babies thinks they can always steal and go to heaven, We all know what Ashanti Hene told ...
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NPP /NDC are not in to save our nation from corruption. These two parties are full of criminals in a disguise of politicians,sharp teeth babies thinks they can always steal and go to heaven, We all know what Ashanti Hene told Akufo Addo just of recent, Abeno bebon

Ex-CHRAJ boss and Vitus Azeem Shred Addison’s AMERI probe

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