{"id":374754,"date":"2017-11-17T17:36:03","date_gmt":"2017-11-17T17:36:03","guid":{"rendered":"http:\/\/citifmonline.com\/?p=374754"},"modified":"2017-11-17T18:06:18","modified_gmt":"2017-11-17T18:06:18","slug":"well-save-7-2bn-from-11-terminated-power-deals-agyarko","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/11\/well-save-7-2bn-from-11-terminated-power-deals-agyarko\/","title":{"rendered":"We’ll save $7.2bn from 11 terminated power deals – Agyarko"},"content":{"rendered":"
Ghana is expected to save $7.217 billion from the\u00a0termination\u00a0of 11 Power Purchase Agreements (PPA) over a 13 year period, the Energy Minister, Boakye Agyarko has said.<\/p>\n
These terminations, following a recent review, will come at cost of\u00a0$402.39 million, Mr. Agyarko told Parliament on Friday.<\/p>\n
[contextly_sidebar id=”MUhKStcAbKQQ4FrSHzbnaSKwYbQotppm”]As indicated by the government earlier in 2017, it was reviewing PPAs initiated by the Electricity Company of Ghana, mostly under the Mahama administration.<\/p>\n
The committee reviewing the agreements assessed 26 out of 30 power purchase agreements ECG initiated, and the remaining four were not touched because they were already operational.<\/p>\n
The combined generation capacity of the 26 reviews amounted to 7298 MW of power.<\/p>\n
Mr. Agyarko said Ghana \u201cstands to make significant savings\u201d from the deferment and termination of the agreements.<\/p>\n
“The estimated cost for termination is $402.39 million compared to the average annual capacity cost of $586 million each year; a cumulative of $7.6 billion from 2018 to 2013. This yields an estimated savings of $7.217 billion over a 13 year period.\u201d<\/p>\n