AMERI deal: Adhere to debt plan – ACEP

Energy Think Tank, the Africa Centre for Energy Policy (ACEP) is urging government to follow strictly the payment schedule of debts to allow the country to benefit from the full cost saving of the $2.8million waiver by AMERI.

Per the new arrangement, government has agreed to a payment schedule for the outstanding $90million it owes to AMERI in a four-payment schedule in November 2018 ($10 Million), January ($30 million), February ($25 million) and March 2019 ($25 million).

According to ACEP, “it is our understanding, however, that the November payment has already been in default.”

The Think Tank in press statement issued recently scored government high marks for the latest draft deal between the government and the power producer. Executive Director of ACEP, Benjamin Boakye, said the current agreement made significant savings for the country.

According to him, after reading the new agreement it is clear that at least $9 million had been saved on the new deal.

According to ACEP, on the capital recovery of the $510 million in the original contract, AMERI provides conditional and unconditional rebates.

AMERI also agreed to extend the payment period to 6 years instead of the original 5 years to decouple fiscal tenure from technical/operational tenure of 5 years of the contract.

This, ACEP noted reduces the annual recovery payment of $102 million to $76.5 million or monthly payment of $8.5 million to $6.375 million for the remaining two and half years.

“The difference between the new annual payments for the two and a half years and the original contract is $63.75 million. Out of the $63.75 million, AMERI waives $7 million to government unconditionally. An additional $2.8 million will be waived on condition that GoG respects the payment schedule agreed in the addendum,” the statement said.

ACEP further called for similar closures to be brought to all contracts under renegotiation to “allow for proper planning of the power sector which is inundated with many challenges.”

The new deal is yet to be vetted by Parliament and approved if the MPs agree on the new terms.