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Minority claims that government signed new PPA without following proper procedure

January 24, 2023
in Business
Minority claims that government signed new PPA without following proper procedure
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According to the Minority in Parliament, the government has inked a new power purchase agreement (PPA) with AKSA through the Electricity Company of Ghana.

The administration has already said that the nation does not require new power producing facilities, thus the Minority is perplexed as to why it would sign such a contract.

The new contract has a 10-year lifespan, according to John Abdulai Jinapor, ranking member of the parliament’s Mines and Energy Committee, who spoke to journalists on Monday, January 23, 2023.

The Caucus will seek answers when the House returns from recess, according to his claim that the deal was signed without following due process.

“This government has signed the AKSA deal again for 10 years, not five years but 10 years and with take or pay clauses and I want them to come and deny it. They said they didn’t need it so why are they extending it. Moreover, the five years was supposed to amortise and pay for this plant because there was a capital recovery cost.

“So as it stands, the plant has been fully paid for and yet this government has signed this new contract through ECG for a 10-year tenure. So this government, I think Ghanaians are tired of their deception and the story telling. Anytime they say they are renegotiating something, it turns out to be something worse. We saw that with PDS, we saw that in Ameri and several other contracts.

“I sit on the Mines and Energy Committee as Ranking Member and that committee has the powers to supine for documents and the chairman has ruled that ECG should immediately furnish the committee with the AKSA contract (new contract) and more than a month, ECG has refused to do so.

“So we are waiting to resume and we shall summon the ECG MD to demand that document (new AKSA contract) because it is a document of an institution owned by the state,” he added.

Tags: Electricity Company of GhanaJohn Abdulai JinaporMines and Energy Committee

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