Government Saves Ghana $300m – Daily Guide Africa

Vice President Dr Mahamudu Bawumia

Vice President, Dr Mahamudu Bawumia has disclosed that government has canceled about 20 power purchasing agreements entered into by the previous NDC government.

He said the abrogation of the agreements has saved the nation more than $300 million.

Dr. Bawumia who made this known when speaking at Joy News’ 100 days Town Hall meeting at the New Court Complex in Accra yesterday said government is reviewing four other power agreements.

“We have asked four of them to delay their operation and that has helped to manage government’s expenditure,” he said.

The Vice president said government’s review of some power purchase agreements entered into by the previous government has bolstered the energy sector, stating that government is committed to improving the energy situation in the country.

President Nana Addo Dankwa Akufo-Addo expressed disappointment with the way the previous administration handled the energy sector when he took over the rein of power on January 7.

The President at his first State of the Nation Address in February said he was handed a heavily-indebted energy sector that owed its private partners a total sum of $2.4 billion as at December 2016.

He promised to review a total of 43 Power Purchase Agreements (PPA) entered into by the Electricity Company of Ghana (ECG) in 2016 many of which were endorsed by former president John Mahama  including a $1 billion power deal with Early Power Limited.

There is also the deal with Turkey-based Karpower signed with ECG in June 2014 that will add 450 megawatts of power directly to Ghana’s electricity grid.

A 17-member committee set up to review one of the agreements, AMERI Power Agreement, revealed the deal was overpriced by $150 million, although former government officials have challenged it.

The Philip Addison Committee has suggested to government to have the deal renegotiated to cut down the cost.

Meanwhile Dr. Bawumia says the independent power producers in the country cannot charge Ghanaians more than 10 cent per kilowatt hour.

He called for a reduction of the charge to 10 cent per kilowatt hour.

“We have informed independent power producers in the country that they cannot charge Ghanaians more than 10 cent per kilowatt hour. They are charging us 17 cents and in other countries they are 10 cents.”

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BY Cephas Larbi




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