ACEP Lauds Amewu-Led Ameri Deal

Energy think tank, Africa Centre for Energy Policy (ACEP), has scored high marks for the latest draft deal between the government and power producer, Ameri Energy.

Speaking on a current affairs programme, PM Express On MultiTV, the Executive Director of ACEP, Benjamin Boakye, said compared to the controversial Novation Agreement that got Boakye Agyarko sacked as Energy Minister, the current agreement makes significant savings for the country.

According to him, after reading the new agreement it is clear that that at least $9 million have been saved on the new deal.

“What government has done with this new Ameri dealis to say that we have scheduled payments of $102 million, let us agree to reduce that to $76 million per annum and spread the contract period to six years instead of five years that was originally agreed,” he said.

The new deal is yet to be vetted by Parliament and approved if the MPs agree on the new terms.

Background

The John Mahama administration signed an emergency power contract with Ameri Energy in 2015 to rent the 300MW of power at the height of the country’s power crisis, popularly referred to as ‘dumsor’.

The power agreement with the UAE-based Ameri Energy cost $510 million, a figure that was heavily criticised as excessively bloated. The current New Patriotic Party (NPP) administration then in opposition was among the top critics of the power deal.

When the NPP won power in 2016, they said the country had been shortchanged by Ameri. According to Nana Akufo-Addo administration, Ameri was overpaid by at least $150 million.

A Novation Agreement that was drafted by then Energy Minister, Boakye Agyarko, to replace the previous deal was worse, according to experts, particularly ACEP and IMANI Africa.

In that Novation Agreement, the government claims the new deal will save the country a whopping amount of $400 million over a 15-year period, as a new company, Mytilineous International Trading Company, will take over the management of the Ameri power plants for 15 years.

The new company offered to pay Ameri an amount of $52,160,560.00, with the government paying the remaining $39 million to the Dubai-based company so they can wash their hands off the deal entirely.

However, ACEP said the deal was poorly thought through.

Source: Myjoyonline