Local IPPs better off than Ameri deal- Boakye Agyarko

Boakye Agyarko

Power producer, Sunon-Asogli and other local independent power producers would have produced a combined megawatt of 560MV of power as against 230MV from Ameri Energy, Energy Minister, Boakye Agyarko has suggested.

“We would have been better for example pushing to make sure the Sunon- Asogli project was completed and then we would have had more benefits.”

His comments follows his appearance before the Mines and Energy Committee of Parliament to answer questions on whether Parliament should rescind its decision to approve the Ameri Energy agreement.

The previous government signed the BOOT Agreement on February 10,2015 as an emergency power arrangement to help reduce the power supply deficit at the time and the project was expected to be delivered within 90 days after the fulfillment of conditions precedent, but it was never done within the stipulated period.

According to the Energy Minister, the country would have benefited more if it had empowered the Volta River Authority(VRA)as well as the other local power producers.

He also urged Parliament to review the controversial US$510m Ameri deal which he reckons given the financial and economic analysis required in-depth investigations.

“In my mind, if Parliament approves or ratifies a document and there are major changes, it stands to reason that it goes back to Parliament for a review, otherwise Parliament would approve a document only to find that amendments have been made without their concurrence that is something that must lend itself to an investigation.”

Mr Agyarko also stated that government is exploring several options to the deal including pushing the case for annulment based on the establishment of fraud, malfeasance or any such untoward behavior.

“We could push for an abrogation that would incur some liabilities, we are examining all of these in terms of financial implications. It may well be that given the situation we find ourselves, we may be better off abrogating than to let it run. We will run the numbers and make the financial decision based on that.”he explained.

It is a Build, Own, Operate and Transfer (B.O.O.T) agreement between government and Africa and Middle East Resources Investment Group (Ameri Energy) for the installation of ten aero derivative gas turbines.

Ameri Energy was said to have overcharged the government and sublet the contract to Turkish firm, Power Project SANAYI(PPR) at $315 less than what was charged.