Suspend ‘stinking, inflated’ AMERI deal – Minority to Government

The Minority in Parliament has described as “stinking, inflated and a complete-rip off”, the re-negotiated AMERI power deal currently before Parliament, calling for its immediate suspension and broader public scrutiny.

President Akufo-Addo, in a statement issued by his secretary on Monday stated that he had “granted executive approval for the Novation and Amendment Agreement dated July 20, 2018 between (i) the Government

Read full article.of the Republic of Ghana represented by the Minister of Energy (or his authorised representative), (ii) Volta River Authority (VRA), (iii) Africa and Middle East Resource Investment Group (AMERI ENERGY), (iv) Ameri Energy Power Equipment Trading LLC (AMERI EQUIPMENT), (v) Power Projects Sanayi Insaat Ticanet Limited Sirketi (PPR), and (vi) Mytilineos International Trading Company AG (Mytilineos), for operations and maintenance of the existing 250MW AMERI Thermal Plant at Aboadzi, for a period of 15 years.”

While some government officials have come out to argue that there was no value-for-money in the deal signed by the NDC administration, hence the need for renegotiations, the minority say the new deal is riddled with scandalous content and was a complete rip-off.

According to former Energy Minister under the Mahama administration, John Jinapor, it was absurd to extend the agreement for 15 years at an inflated cost when the country has about two and a half years left for the plant to be reverted to government.

He argues that the move was nothing short of criminal and a major blow to the country’s economy.



“The minority in Parliament finds as scandalous, the attempt by President Akufo-Addo to introduce a third party, Mytilineos International Traditional Company to assume ownership of the power plant at a proposed capacity charge of 3.8052 US Cent/KWH for an extended 15 year period at a cost of $1.035 billion, when we are left with two and a half years to own it,” he said.

“It is worth recalling at this point, that the NPP’s whole politicking around this matter in opposition was premised on a dubious claim that the original transaction should not have cost more than $360million. Today, they have signed a deal that cost $1.035 billion which is over $800 million more than the very figure they bandied about.

“This agreement with Mytilineos International is full of padded, inflated and contrived miscellaneous figures which clearly reveals that the new deal fits into a grand scheme orchestrated at the very highest echelons of government to create, loot and share the spoils of those new agreements,” he added.

Mr. Jinapor, who is also a Member of Parliament’s Committee on Mines and Energy, addressing a press conference today, also asked for new negotiation into the KARPOWER deal.

“We note that we are not alone in the crusade to reverse this terrible deal. But another issue of importance is another deal being considered by this government. This renegotiated agreement is worse than the AMERI Novation Agreement presented to parliament by Mr. Boakye Agyarko. Indeed the renegotiated Karpowership Agreement stinks to the heavens with big fishes in government superintending the looting of the state under this new deal”, he stated.



Background

Government of Ghana signed a deal with AMERI Energy to supply 10tm2500+ power turbines to produce 250mw of electricity. Under the Build, Own, Operate and Transfer Agreement signed on 10th February 2015, the Africa & Middle East Resources Investment Group Llc (AMERI) had the sole responsibility to source funding, construct the plant, install all auxiliary services as well as operate the plant for a maximum period of five years after which the entire plant is to be reverted to government of Ghana at no additional cost.