Power Agreements: Minority Rebuts Akufo-Addo’s $7billion Savings Claim

The Minority in Parliament is disputing claims by President Akufo Addo that his administration has saved the country $7 billion after it renegotiated power deals signed by the Mahama Administration.

The Minority Spokesperson on Energy, Adams Mutawakilu is challenging the claim and has asked the president to show evidence of same.

Speaking at the Financial Times Africa Summit in London last week, the president said his government reviewed 24 power purchase agreements, which has led to some savings for the country.

“…In addition, a review of 24 power purchase agreements, which has led to the termination of 11 power deals and the rescheduling of 8 others, has enabled us to save the government treasury about $7 billion in excess capacity charges over a 13-year contract period,” the President said.

He told the forum, his government, has issued 7-year and 10-year cedi-denominated bonds, totaling GH¢4.7 billion, which have halved the $2.4 billion energy debt it inherited.

“Ghana, as a result, is today a net exporter of electricity. I was in Ouagadougou, capital of Burkina Faso, last Friday, for the inauguration, with the President of Faso, His Excellency Roch Marc Christian Kabore, of the Bolgatanga (capital of Ghana’s Upper East Region) to Ouagadougou Power Interconnection Project, which will see, daily, up to 100 megawatts of power supplied directly to Burkina Faso from Ghana,” he added.

But the Minority is contesting the claim.

Addressing a press conference Adam Mutawakilu said the president must come with further and better particulars.

“They know the sub-region, Mali, Burkina Faso, Niger, Togo, will prefer to take power from Ghana and you can only provide power to them if you have excess capacity… That is why president Mahama invested heavily in the installed capacity.

“..So if president Nana Akufo-Addo comes and says he has renegotiated eight and canceled 11, the first question is for him to make public the 11 canceled power purchasing agreement and the eight that has been rescheduled so that Ghanaians including civil society organisation and the minority in Parliament will have the opportunity to scrutinize it.

“You can’t be talking about savings without talking about the potential benefits. If we exploit this market and can put this power into use by exporting it I believe we will earn more.

He said the 7billion claim by the president was narrowly assessed.

Adam Mutawakilu also challenged the quantum of reduction in electricity prices.