Business News of Thursday, 6 December 2018
Government has withdrawn the controversial Africa and Middle East Resources Investment Group (AMERI) deal which was brought to Parliament by the former Minister of Energy, Mr Boakye Agyarko.
A new deal has, however, been placed before the House by the Minister of Energy, Mr Peter Amewu.
Government is, therefore, seeking approval from Parliament to review the renegotiated and enhanced terms of the build, own, operate and transfer (BOOT) agreement it entered with the AMERI Energy on February 10, 2015.
Mr Amewu had earlier withdrawn the renegotiated Ameri Energy deal, which generated controversies and accusations of bloated figures and led to the sacking of the then Minister of Energy, Mr Boakye Agyarko.
The First Deputy Speaker of Parliament, Mr Joseph Osei-Owusu, referred the new agreement to the Joint Committee of Mines and Energy and Finance for consideration and report.
Details of the new terms of the renegotiated agreement were not immediately available.
In a brief remark to journalists, Mr Amewu said the terms in the renegotiated agreement are better and improved than the terms contained in the agreement reached between the erstwhile National Democratic Congress (NDC) government and Ameri Energy.
“I think it is an improvement. I think this is a better agreement. It is an improvement on what the previous government, the National Democratic Congress (NDC), had offered this country.
“It is a better agreement than what originally has been signed by the previous administration”, he said.
As part of measures to address power supply challenges, the government entered into a BOOT agreement with AMERI Energy on February 10, 2015 for the provision of a fast-track turn-key power generation solution through the construction of a power plant.
Under the agreement, AMERI Energy installed 10 gas turbines and all related equipment and provided certain services related to the operation and maintenance of the plant for a period of five years.
On July 25, 2018, a Deputy Minister of Energy, Mr William Owuraku Aidoo, laid the memorandum requesting Parliament to seeking approval to review the BOOT agreement it entered with AMERI Energy on February 10, 2015.
A memorandum submitted to Parliament indicated that the new transaction had a waiver of $52.7 million due AMERI Energy that the government of Ghana would have had to pay.
Besides, the memo said, there would be a reduction in the standby letter of credit (SLC) from $51 million to $37.5 million and cost savings of $405.067 million over a period, while electricity tariffs on end users would be reduced.
He said President Nana Addo Dankwa Akufo-Addo had given Executive approval for the innovation and amendment agreement due to the gains to be made in favour of the country.