Politics

IES fears return of ‘dumsor’ if government refuses to take over Ameri plant

The Institute of Energy Security (IES) has predicted a complete shutdown in power supply in Ghana following the lack of preparedness by the government to take over the Ameri Power deal.

The Ameri deal was signed by the government in 2015 at a total cost $510 million to provide 230 megawatts of power for five years.

This was done to assist in resolving the power crisis at the time.

Although Ameri Energy wrote in September 2020 to inform the government of its intention to hand over the plant by the date stated in the contract, the government of Ghana has not yet carried the necessary steps to ensure a smooth handing over.

Describing this as unfortunate, former Ranking Member on Parliament’s select committee on Mines and Energy and a fellow of IES, Adam Mutawakilu, in Citi Business News interview, urged the government to fasten the take-over process to prevent power outages in Ghana.

“Per the agreement, for the first five years, the tariff is 14.5 cents per kilowatt-hour and immediately after the fifth year, the tariff is supposed reduce to 10.41 cents per kilowatt-hour. What is government’s stance now? Are we still going to continue to pay 14.5 cents per kilowatt-hour or we’ll now pay 10.41 cents per kilowatt-hour? If it reduces to 10.41 cents per kilowatt-hour, it implies that we expect tariffs to reduce for Ghanaians to start benefitting from that agreement.”

He added, “Government must come out clear. And if the government insists they would not want to take over the plant, I think we’ll have a shutdown completely and that means we’ll be back to ‘dumsor’. So government’s unwillingness to do all the necessary protocols to take over the plant is quite unfortunate and must be condemned. Government must act fast to take over this plant.”

It is expected that Ameri Energy would have recovered the cost of the plant and hand it over to the government of Ghana on Monday, February 1, 2021, per the agreement in the contract.

Source: citinewsroom

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