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NPP Lies about US$7.6 billion Savings in Energy Sector – NDC

The National Democratic Congress (NDC) has once again exposed the ruling of New Patriotic Party (NPP) for lying that the current government has saved about US$7.6 billion improper deal signed under the John Dramani Mahama administration in the Energy Sector.

Speaking at a press conference in Accra, the NDC National Communication Officer, Sammy Gyamfi alleged that Gabby Asare Otchere-Darko/Boakye Agyarko made claims that the Government has saved Ghana an amount of US$7.6 billion from the termination of eleven (11) Power Purchase Agreements (PPAs) entered into by the Mahama Administration for 13 years.

The NDC National Communication Officer quizzed, “why has Gabby and the NPP failed to back their allegation with evidence of the said terminated PPAs, including the date they were signed, the annual capacity charges and the conditions for Ghanaians to make their own judgement”.
“…..clearly, the Akufo-Addo government and the NPP have lost focus, hence their continuous resort to mendacity and sheer political chicanery”, he stated.

He pointed out that the NDC intends forgiving the NPP but the Minister of Energy, Peter Amewu also mentioned that his outfit saved US$6.8billion from the same eleven (11) PPAs deal in a press conference.

Following these contradictory lies and contrived statements, the NDC finds it necessary to set the records straight.

He said however, these claims were only recently discounted by the ECG (which is the off-taker and the signatory to the said agreements) at a presentation to the Parliamentary Select Committee on Mines and Energy.

“It is therefore laughable that a government with over 120 Ministers will rely on a private citizen, Gabby Asare Otchere-Darko to churn out such vile propaganda”, Sammy Gyamfi retorted.

He explained that on November 13, 2016, a Cabinet report on the Energy Sector prepared by the Ministry of Energy, the Energy Commission and the World Bank (IBRD and IDA) recommended the discontinuance of some PPAs which had failed to achieve financial closure.

He mentioned notable among the findings contained in this report the failure by some of IPPs to meet their contractual obligations prolonging to the country’s power deficit and challenges.

The NDC National Communication Officer added that most of these PPAs could only become effective after certain condition precedents had been fulfilled.

“The agreements needed to receive the necessary cabinet and parliamentary approvals with the accompanying Government Consent and Support Agreement (GCSA) which was later changed to a Put-Call Option Agreement (PCOA)”, he pointed out.

“…..it is therefore preposterous for Mr. Gabby Asare Otchere-Darko and the NPP to come to conclusion that the country has saved a whopping US$7.6 Billion by what they claim as termination of PPAs”, Sammy Gyamfi opined.

“…..it is important to point out that Power Purchase Agreements are mostly executed by the Off-Taker (i.e. ECG) and not the President as Gabby and the NPP are mischievously trying portray”, says Sammy Gyamfi.

The NDC Communication Officer urged the Akufo-Addo government to stop the continuous whining about Ghana’s excess capacity and rather focus on expanding national electricity coverage and the exportation of power to neighbouring countries.

Adding, he says since assuming office, the Akufo-Addo Government has only managed to achieve a paltry 1% increment in national electricity expansion.

Sammy Gyamfi hinted that the expansion of transmission lines from 161KV to 330KV which President Mahama started with the intention to expand the exportation of power to Burkina Faso and other neighboring countries but Nana Akufo-Addo directed the work to stop.

Source: therepublicnewsonline.com/ Delali A. Awuyeh

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