{"id":414147,"date":"2018-03-29T06:00:14","date_gmt":"2018-03-29T06:00:14","guid":{"rendered":"http:\/\/citifmonline.com\/?p=414147"},"modified":"2018-03-29T13:27:17","modified_gmt":"2018-03-29T13:27:17","slug":"well-save-60m-yearly-from-renegotiated-karpower-deal-dep-minister","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2018\/03\/well-save-60m-yearly-from-renegotiated-karpower-deal-dep-minister\/","title":{"rendered":"We’ll save $60m yearly from renegotiated Karpower deal – Dep. Minister"},"content":{"rendered":"
Though the exact savings from the renegotiation of the Karpower deal from 10 to 20 years are yet to emerge, Ghana will be saving at least $60 million per year, according to a deputy Minister for Energy, William Owuraku Aidoo.<\/p>\n
These savings will come from the utilization of gas from the Sankofa fields.<\/p>\n
[contextly_sidebar id=”rUk7wTuiKssKwXHgLFNF9GL6QfVX4pUm”]Mr. Aidoo justified the Akufo-Addo’s administration’s extension\u00a0of the\u00a0deal it once criticized, and said the previous deal was not cost-effective because of the 10-year duration.<\/p>\n
It is unclear what the new terms are, but the company recently announced it will move from using Heavy Fuel Oil [HFO] to natural gas when it moves the vessel from Tema to Takoradi.<\/p>\n
The Karpowership from Turkey has the capacity to supply 470 megawatts (MW) of power to Ghana.<\/p>\n
“The basic structure of the deal then was totally wrong. It was nothing to write home about… We’ve renegotiated the Karpower deal and stretched it over 20 years to ensure value for money,” Mr. Aidoo said on Eyewitness News<\/strong>.<\/p>\n “If you sign a power purchase agreement over a short period of time; that was 10 years, what it meant was that the good people of Ghana would virtually have to pay through the nose over a 10-year period which necessarily means they would have to pay higher tariffs. To stretch over a longer period will [see tariffs] come down to somewhere in the region of 10 cents per [kilowatt hour].\u201d<\/p>\n The tariffs under the previous deal stood at around 15 cents per Kilowatt hour.<\/p>\n Aside from the reduced tariffs, Mr. Aidoo added that, extending the deal also “stabilized the power in the west and at the same time utilizes gas from the Sankofa fields, which if we didn\u2019t will cost the government somewhere in the region of $60 million dollars per year.\u201d<\/p>\n Retort from Minority<\/strong><\/p>\n The\u00a0Member of Parliament\u00a0for\u00a0Damongo\u00a0Constituency, Adam Mutawakilu, however said the renegotiation was nothing exciting.<\/p>\n He also said the reduced tariffs as a result of the extension was no surprise.<\/p>\n