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Minority accuses government of signing new PPA without due process

73018912 Ranking Member on Parliament’s Mines and Energy Committee, John Abdulai Jinapor

Tue, 24 Jan 2023 Source:

The government has through the Electricity Company of Ghana, signed a new power purchase agreement (PPA) with AKSA, the Minority in Parliament has alleged.

The Minority is wondering why the government will sign such a contract when it already stated that the country does not need new power generation plants.

Addressing journalists on Monday, January 23, 2023, Ranking Member on Parliament’s Mines and Energy Committee, John Abdulai Jinapor, said the new contract has a 10-year duration.

He claimed the contract was signed without due process, and when the House returns from recess, the Caucus will demand answers.

“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.

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