You are here: HomeWallOpinionsArticles2017 08 04Article 566417

Opinions of Friday, 4 August 2017

Columnist: Cletus James Yevuga

Hidden agenda damaging the economy more than ever

The AMERI deal is subject of controversy The AMERI deal is subject of controversy

We all want to know the actual truth behind the AMERI power plant deal. Each one of the Ghanaian is curious to know if they are being made to pay through an overcharging or are we actually contributing for the economic uplift of our country?

Truth behind the so called very controversial deal is that this project came in when there was no other power project in construction, there was no serious commitment from any credible investor, who was willing to take the risks involved in investment in Ghana. There was an absence of support from any of the international economies who claim to support the economic development of our nation.

While struggling to convince any of the proclaimed saviors, the people who care for the nation and believe that they came in power to at least provide for the basic necessities of the people of Ghana, if not capable of delivering something extraordinary, made unprecedented efforts to request a member of the Royal Family of Dubai to extend his country’s support to Ghana in setting up a power project.

Though convinced to make a positive contribution to the energy sector, another challenge for them was a limitation to arrange for the investment of the project through conventional financing with a major debt portion raised from a financial institution, due to the pressing need of the Government of Ghana to provide an emergency power solution.

The member of the Royal Family decided to support the Ghanaian nation and uplifting the project through a 100% equity fund.

They convinced their technical partner METKA, to take responsibility for the technical part of the project, with an undertaking from the Royal Family to contribute towards the project cost and also cover the financial risk or the political risk, sometimes referred to as the policy risk.

The show of confidence by the Dubai family was reliant upon the cordial relations between the countries.

The Government of Ghana welcomed the decision of the member of the Royal Family by offering a “RENTAL DEAL” through an LOI issued by VRA.

Upon consideration of the offer and following the vision of the Royal family of Dubai to support Ghana with complete sincerity, AMERI decided that in the best interest of the people of Ghana, they would want to hand over the project, which shall be run and operated by the Government of Ghana for 15 to 20 years after completion of the term of Ameri contract.

Therefore, turned down the offer of RENTAL and made another proposal for Building, Operation and Transfer of the project to Ghana.

AMERI project is 100% equity funded and developed in the record time of four months. Salient features of the project that we Ghanaians must appreciate are that this project is the biggest project ever developed on emergency basis, contributing 25% of the energy mix of Ghana.

This project has the lower capacity charge then the KARPOWER project recently built on RENTAL BASIS, Ghana owns the fully operational entire power project whereas KARPOWER takes the equipment out after just 5 years by pocketing around 600 Million USD as rental charges.

AMERI conducts complete training programs for the Ghanaians, who shall run and operate the project after handover, which is missing in KARPOWER. AMERI project not only enhances the national infrastructure of Ghana but also empower the Ghanaian nation through educations and training.

But it is frightening and distressing for us Ghanaians that the Government plans to shut this AMERI power plant because it provides power to our households, we get employment for our youngsters because rest of the industry runs on the energy produced by the power project. They don’t like our children studying and our families sleeping in our homes peacefully without experiencing power cuts?

They don’t like our new generation being trained by reputable multinational organizations operating AMERI plant? And they have no intention for Ghana to own the infrastructure but stay dependent on the RENTALS? Shatter the trust of the Dubai Royal family who supported in tough time and raising a red flag to every foreign investment.

This is, in fact, an alarming situation for Ghana. Any absurd or untenable action for rescinding a valuable contract would have far reaching adverse effects and raise a serious doubt on the legal system of the country.

Political risk would go sky-high and no foreign investment will come into the country.

We don’t want our nation to let such mistreatment continue just because a small group who is not very happy with the developers? Are these representatives in our assemblies watching our interests or supporting a group of miscreants who are working against our national interests?