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President Akufo-Addo approves new AMERI power deal

By Maame Aba Afful
President Akufo-Addo approves new AMERI deal
President Akufo-Addo approves new AMERI deal

President Nana Akufo-Addo has approved the new AMERI power deal pending parliamentary approval.

 A statement signed by Secretary to the president, Nana Asante Bediatuo, dated 25 July 2018, stated that: “The President of the Republic of Ghana has granted executive approval for the Novation and Amendment Agreement dated July 20, 2018 between (i) the Government of the Republic of Ghana represented by the Minister of Energy (or his authorised representative), (ii) Volta River Authority (VRA), (iii) Africa and Middle East Resource Investment Group (AMERI ENERGY), (iv) Ameri Energy Power Equipment Trading LLC (AMERI EQUIPMENT), (v) Power Projects Sanayi Insaat Ticanet Limited Sirketi (PPR), and (vi) Mytilineos International Trading Company AG (Mytilineos), for operations and maintenance of the existing 250MW AMERI Thermal Plant at Aboadzi, for a period of 15 years.”

The New Patriotic Party (NPP) administration recently began taking steps to amend portions of the controversial $510 million deal signed by the John Mahama administration.

The current government believes that there was no value-for-money in the deal signed by the NDC administration, hence the renegotiations.

RELATED: Controversial Ameri power deal returns to parliament for amendment

The renegotiated deal is expected to be approved by parliament when the House resumes from recess.

The Ameri Power deal was signed by the Mahama administration in 2015 at the peak of the country's energy crisis.

As part of the deal, the government agreed to rent 300MW of emergency power and Ameri was to build the power plants and operate them for 5 years before transferring it to the government.

The cost of the deal was $510 million and received parliamentary approval on March 20, 2015, despite opposition from the NPP.

The government, on Wednesday, 25 July, laid a paper before parliament for the amendment process to start.

It was referred to the Joint Committee on Finance and Mines and Energy for consideration and report by the First Deputy Speaker Joseph Osei-Owusu.

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