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Friday, March 29, 2024

Kwabena Donkor to face parliament today

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Former Power Minister, Dr. Kwabena Donkor will later today appear before the Mines and Energy Committee of Parliament in relation to the controversial US$510million Ameri Energy agreement.

MP for Adansi Asokwa and former Ranking Member of the Mines and Energy Committee of Parliament, K. T. Hammond has strongly put up a defense why Parliament should rescind its decision over the approval of the deal.

At a meeting with the Mines and Energy Committee, Wednesday, over the issue, Hon. Hammond said issues of misrepresentation on the part of the Africa & Middle East Resources Investment Group (Ameri Group) informed his decision to move the motion for the House to rescind its decision over the deal.

Dr. Kwabena Donkor was the Minister for Power when the deal was brokered and ratified by parliament.

It’s unclear whether the committee meeting billed for today will be a public hearing.

 

Background

Parliament on March 20, 2017, approved the contract agreement for a Build, Own, Operate and Transfer (BOOT) between the Government of Ghana and Ameri Energy.

The agreement was for the provision of 250MW fast track power generation solution by the installation of ten (10) GE TM 2,500 + aero derivative gas turbines in Ghana. The agreement was dated February 10, 2015.

Per the dictates of the agreement, Ameri Energy was to deliver, install and commission the ten (10) GE TM 2,500 + aero derivative gas turbines; operate, maintain and repair the equipment in accordance with the manufacurer’s instructions and prudent industry practice; ensure that the equipment is operated by qualified operators; be responsible for scheduled overhauls of the equipment as requested recommended by the manufacturer; provide on-site practical training to qualified and experienced employees six months prior to the end of the term of the agreement; and grant to the State access to the plant on biannual basis for the purposes of inspection of the site, the equipment and maintenance of records among other things.

The agreement had a clause that made room for Ameri Energy to assign their obligations to any of their subsidiaries or affiliates. However, such assignment required the prior consent of the Government of Ghana.

The said provision made it clear that if such an assignment was permitted by the Government of Ghana, then the government would not be relieved of any of any its obligations under the agreement.

The clause on assignment also provides that Ameri Energy may assign their right to payment under the agreement to its lenders. That means Ameri Energy would resort to borrowing to undertake its obligations.

The period for the agreement is five years with a total payment of US$102million per year.

But two years down the line, Hammond contends that per available documents he has chanced upon, it was proper for the House to consider and grant his wish.

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