Controversy over $953m thermal plant agreement; Parliament calls for probe

An emergency power plant agreement worth US$953.4million which has been approved by President John Mahama but yet to receive the blessing of Parliament has sparked controversy with the cost of the plant being the bone of contention.

The plant which was initially agreed to generate 344 megawatt was estimated to cost US$647.7million.

However, a request for additional 56 megawatt shot the cost of the now 400 megawatt facility to US$953.4million.

That means the additional 56 megawatt facility will cost the tax payer US$305.7million.

The deal which is currently before the Mines and Energy Committee of Parliament has irked some panel members after the deputy Minister for Power, John Jinapor failed to convince them over the pricing of the facility when he appeared before them.

Jinapor, Kasapafmonline.com, has been told by the Committee to produce further and better particulars of the deal as why the cost of 344 megawatt combined cycle gas turbine power plant with a request for additional 56 megawatt facility will balloon to US$953.4million when on the open market the same facility (400megawatt) cost US$600million.

Member of the Committee and MP for Atwima Mponua, Isaac Asiamah told this website that the Committee is not happy about the deal and have therefore requested for value for money (VFM) audit.

“We want to know whether it was the opinion of the auditors to accept the cost of the facility”, he noted.

The 400 megawatt power facility when approved by Parliament will be sited in Tema with Early Power Limited which is said to have entered into an agreement with the Government of Ghana, Electricity Company of Ghana (ECG), Sage Petroleum Limited, Endeavor and EPL Holdings Cooperatie, UA, General Energy Investments (GE) IBV and Quantum Gas Terminals executing the project.