TARZAN’S ROLE & THE EVIDENCE
Chronicle investigations have revealed that the main architect of the Strategic Reserve Plant (SRP) which has become an assault on the public purse was not the two top officials were sacrificed last month but rather, the immediate past Chief Executive, Dr. Charles Yves Wereko-Brobby. Documents in the possession of The Chronicle show that Dr. Wereko-Brobby secured the 120 MW SRP which was then known as Emergency Power Plant (EPP) and ordered the Directors of Legal, Finance and EP& D to submit a contract within five days.
A memo dated January 23, 2002, signed by the VRA boss and copied to the Directors of Legal, Finance and EP& D stated that “We have secured a 120 MW Emergency Power Plant to enable us assure a reliable power supply for this year as well as assist with the better management of the Volta Lake. The Plant is expected to become operational from March 1, 2002 and should resolve the following critical problems”
Dr. Wereko-Brobby continued: “In order to expedite action to ensure that the plant will be commissioned in a timely manner, I would be grateful if you could prepare a contract which incorporates the contents of the letters exchanged between the proposed EPP Contractor and myself, Lushann International Energy Corporation of the USA”.
According to the memo, Dr. Wereko-Brobby ordered the three civil servants to prepare a draft contract within five days - that is - Monday January 28, 2002.
In the continuing search by The Chronicle to further establish the direct involvement of Dr. Wereko-Brobby in the lease of SRP came a letter dated January 10, 2002, addressed to Lushann International Energy Corporation, 2616, South Loop, Suite 502, Houston, Texas 77054. The letter which had the with the heading “Lease of 85 MW Power Plant” was signed by Dr. Wereko-Brobby and was to the attention of one Quincy Sintim Aboagye.
In the said letter, Dr. Wereko-Brobby stated, “I am pleased to confirm that the Volta River Authority (VRA) is interested in leasing an 85 MW Power Plant from your company under the following terms…”
Giving the terms of the lease, Dr. Wereko-Brobby stated that the plant was to be leased for a period of three years in the first instance; that the plant will be run on a base load basis for the lease period at a capacity charge of $0.015 per KW/h, subject to annual review on mutually acceptable basis.
He stated, “ The plant will be delivered within six weeks of the date of this letter but not later than ei8ght weeks from this date.
“The plant will be operated by your company for the entire duration of the lease and will be assumed to be operable at all times during the lease period.”
Dr. Wereko- Brobby also stated that the fuel for the plant shall be paid for by VRA and through a charge outside the agreed charges for the lease of the plant. He added that VRA shall secure all the necessary exemptions or be responsible for the payment of all customs, excise and related charges applicable to move the plant from port to operating site.
In the said letter, Dr. Wereko-Brobby noted that an agreement was to be reached on the technical requirements and operational issues needed to be resolved to ensure the optimal and cost effective operation of the plant and that the decision as to the suitable shall be reached prior to the shipment of the plant to Ghana.
The letter continued “The plant shall be commissioned not later than March 1, 2002, which date shall be effective date for the commencement of the lease period” adding that the VRA shall make satisfactory arrangements to ensure that payments are made in a timely manner and in a form that ensures convertibility of the funds.
“We are pleased to confirm that this letter can be treated as a firm commitment to your company in expectation that the foregoing arrangements will be addressed in a mutually satisfactory manner. We look forward to working with you to get this project off to an expeditious start and a very successful operation.”
Thirteen days after Dr. Wereko-Brobby entered into direct negotiations with Lushann International Energy Corporation, he wrote a memo dated January 23, 2002 to the Directors of Legal, Finance, EP & D and copied to DCE (E&O) and Adviser, CE’s Office. The memo, which was under titled “Lease of Emergency Power Plant”, was duly signed.
In it, Dr. Wereko-Brobby stated that the SRP was to resolve the problems of:
“Overcome the 450 MW restrictions on the Western corridor of the national transmission system by enabling the addition of the 120 MW in the Eastern portion of the network. Enable Togo and Benin to meet their power supply needs, overcoming the prospects of their losing the 70 MW export from CIE wheeled through the Western Corridor of our transmission.”
He added that the Emergency Power Plant was also to allow a third Unit of the Akosombo dam to be shut down thus reducing the draw down from the lake by 25%. It was also to reduce VRA’s dependence on imports from Cote d’Ivoire,” he said.
Yet to come to the fore is a confidential public document, which indicts the former VRA Chief for his role in the SRP project. According to the document, for a project of the magnitude of the SRP, it is normal practice that it is contracted to a company, which has a track record of carrying out works of similar nature.
The document said Lushann had no previous track record in the leasing of power plants adding the Lushann was preceded with no due-diligence to ensure it would be able to fulfill its obligations.
The confidential document also points out that no effort was made to seek alternative proposals from a minimum of two other sources, as is the normal practice in VRA for emergency procurement.
The document also states that the implementation plan which aimed at commissioning the plant within six to eight weeks from the date of issue of the letter of intent from was unrealistic and that Lushann never submitted any detailed schedule to support their ability to meet the schedule in spite of several requests from the VRA technical team that worked on the project.
Another interesting highlight of the document is that the project had no credible financing plan, therefore the March 1, 2002 date when the plant was expected to go commercial was alien to reality as VRA was still struggling to establish the $1 million letter of credit required to guarantee payments to Lushann.
