Energy Minister Hot Over Ameri Deal

Details are emerging over how the fate of Boakye Ayarko, the Minister of Energy hangs in the balance over the revised controversial AMERI deal.

Sources close to the corridors of power insist the deal that has seen much political debate is set to be scrapped by the president.

The cancellation of the deal, according to the source has become necessary because the president was reportedly “misled” into believing the deal was good for the country.

It may be recalled that on July 25, the Executive Secretary to the president, Nana Bediatuo Asante wrote on behalf of the president giving executive approval to the novation and amendment agreement to the original Almeri deal of 2015 as presented by the Minister.

It said “the president of the republic has granted executive approval for the novation and amendment agreement dated July 20, 2018 between (I). the government of the republic of Ghana represented by the minister for energy (or his authorized representative), (ii) Volta river authority (VRA), (iii) Africa & the Middle East Resources Investment Group Almaeri Energy (ALMERI Energy) (iv.) Almeri Energy Power Equipment Trading LLC (Almeri Equipment), (v). Power Projects Sanayl Insaat Ticaret Limikted Sirketi (PPR) and (vi.) Mytilineos International Trading Company AG (Mytilineos), for the operation and maintenance of the existing 250MW Almeri thermal plant at Aboase for a period for 15 years.”

But latest information on the controversial contract indicates that the president has kicked against the reviewed deal, calling into question the quality of information between the presidency and the Energy Ministry.

Already, a close confidante to the president, Gabby Asare Otchere Darko is reported to have said that the deal is off.

In a tweet yesterday, the lawyer with a particular reference to media publication said the “New Ameri deal is off.”

The revised deal brought to Parliament for approval has received as much a backlash as the original deal signed by the Mahama led government in 2015 during a major power paralysis in the country.

The $510million power plant for five years was criticized by the then opposition New Patriotic Party with allied policy think tanks including ACEP and IMANI.

The party promised to review the deal if it won power in the 2016 elections and when it did, a 17-member committee was constituted to investigate the details of the AMERI deal and provide recommendations.

The Philip Addison led committee concluded the deal had been inflated by about $150 million and recommended a review.

Deal in Parliament

Last week, the government brought to Parliament a review of the agreement by introducing a new company, Mytilineous International Trading Company, to take over the interest of AMERI with an extended period of five to 15 years.

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

According to the agreement, the price at which government will now buy power will be reduced from 14.5919 cents to 11.7125 cents per kWh which will lead to a savings of $405.067 million.

Government claims the renegotiated deal will save the country a whopping amount of $400 million over the 15-year period.

But the same civil society groups which kicked against the original deal say the new one is even worse.

ACEP insists government cannot purport to extend the deal to 15 years with a miserly reduction in prices of power per kwh when it has only two years more to own the property and can even reduce the prices even further from 11.7125 cents per kWh to 10 cents per kWh.

The now opposition NDC is seethed with anger over the new.

Prez Culpable

At a press conference Wednesday, former Power Minister and MP for Yapei Yusawgu said the president must be held responsible for the “stinking corrupt” reviewed AMERI deal brought to Parliament for approval.

He said for the president to have brought the new agreement to Parliament with an executive approval suggests he must have read the details of the documents and must have agreed to every detail.

He said a deal that will extend the tenure of the AMERI power plant ownership arrangement for 15-years is nothing more than a rip-off.

The Progressive Peoples Party also issued a statement demanding that government immediately withdraw the new deal

By: Jeffrey De-Graft Johnson