Parliament is in the process of considering the proposal for the termination of the controversial $510 million AMERI power deal brought before it by the government.
Kasapa FM’s Stephen Odoi Larbi reports the Mines and Energy sub committee of parliament is yet to submit the report to the plenary for adoption by the House.
This comes after government on Thursday laid before parliament a fresh agreement to amend the controversial $510 million AMERI power deal that was approved by the same House in 2015.
According to documents sighted by Kasapafmonline.com government says it will make a savings of 405 million dollars to the state in the new deal.
The government has already handed the deal to a new company, Mytilineos International Trading company AG if Parliament approves the new bill.
The government in the new agreement will pay Ameri $39 million while the new entity will also pay $52 million to Ameri on behalf of the government of Ghana.
Portions of the document stated that “reference is made to the public outcry in connection with the AMERI BOOT Agreement, coupled with the discussion of the issue in Parliament regarding the cost of the project.
“Much as the Ministry of Energy appreciates the importance of adequate power supply for the socio-economic development of the country, the Ministry is also very much concerned about the cost of the project in order not to overburden the citizenry with high cost of electricity.
“As a result, the Ministry initiated discussions with the parties, and renegotiated the lens of the BOOT Agreement in line with affordability and financial sustainability. These discussions were preceded by the formation of a Committee by the Minister for Energy to review the BOOT Agreement. The Ministry has therefore established a new contractual framework safeguarding the agreement of power and the continuous of the proper operation and maintenance of the plants by an experienced company, Mytilineos International Trading company AG for a term of 15 years from the novation and amendment agreement effective date, during which the provision of operation and maintenance services and all related services shall be undertaken by the company.”
The John Mahama administration signed the deal in the heady days of the energy crisis to essentially minimize the country’s power woes.
However, after the New Patriotic Party (NPP) took over power, a committee established by Energy Minister, Boakye Agyarko, concluded that the sole-sourced deal had been overpriced by $150 million.
NPP MP for Adansi Asokwa K. T. Hammond filed a private motion in August 2017 seeking a review.
The Minority at the time, staged a walk out of the House when the speaker admitted the motion and referred it to the Mines and Energy committee, claiming an MP cannot move for a rescission of an approved agreement.
The agreement was referred to the joint Energy and Finance Committee to consider and report back to the House.
Parliament is likely to okay the committee report before the House goes on break this weekend.
