Contrary to claims by the Power Ministry that the five hundred and ten million dollar deal with Ameri Energy, includes the cost of providing fuel for the power plant, a 20th March 2015 parliamentary hansard reveals otherwise.
Government is under pressure to prove that, the deal is value for money, after a Norwegian news outlet publication that the deal was signed with a fraudster and that Ghana could have purchased the power barge for half the price.
[contextly_sidebar id=”hAs2Mj3jLdEY8ZRMmcXlRbMoAi8UPMjl”]Communications Consultant to the ministry Edward Bawa in an interview with host of the Citi Breakfast Show Bernard Avle, earlier said, Ghana was paying for the fuel for the Ameri plant.
Edward Bawa said the agreement “includes the civil works, sub-station, information of the equipment, cost of financing, the operation and maintenance, and it includes the auxiliary.”
He explained that “the gas component is a variable cost. If today it happens that the cost of gas say its X10 per unit produced and tomorrow its X plus one you can’t incorporate that into it. Basically as VRA being the off taker in the one million and two million per annum took into consideration the cost of fuel at that particular time when they were signing the agreement.”
When asked what the total cost of gas would be Eward Bawa said “that question cannot be readily be answered.”
But when he was pressed further he backtracked and stated financing for the fuel is part 510million dollar deal.
Bernard: You admit that if we had bought the equipment raw without installation and operation it will cost $220 million. You are saying that the difference between the $220 million and the $510 million is accounted for by auxiliary works, installation and other components. Initially you said that includes the operation and maintenance and that includes buying fuel all into the $510 million. Is that correct?
Bernard: So the fuel is part of operation?
Bawa: Yes, obviously.
Bernard: so you are saying that the cost of buying fuel every month to run the AMERI plant is incorporated in the $510 million under the heading Operation, is that what you are saying ?
Bawa: Bernard, I’ve told you that, that is a variable cost.
But the Friday, 20th March 2015 Parliamentary hansard, which reports parliamentary debates stated that “the state has undertaken to provide the gas required to run the turbines (Section 9 of the Agreement). The state intends to meet this obligation by procuring gas from the Atuabo Gas project to meet fuel requirement. The cost of the gas will be borne by VRA.”
Meanwhile Bernard Avle on Eyewitness News on Monday, explained further on what the hansard stated: