Parliament today [Wednesday] passed a US$953 million power deal that will see Early Power Limited construct, fuel and maintain a 400 megawatt power plant.
The 25-year deal was passed amidst vehement opposition from the Minority in parliament.
Concerns had been raised that stated total cost is exponentially higher than the average international cost of constructing such a plant in the industry. Industry watchers say a 400 megawatt plant should on average cost around US$600 million.
The Deputy Minister of Power, John Jinapor had been defending the power deal when it was a proposal and he made further attempts to assure the House that it was in the interest of end users and also government.
Speaking on the floor of Parliament, he held that the deal “will not only help the power sector but also help the petroleum sub-sector and so this is a project that is all encompassing and will surely be of benefit to the country.”
Deal capped at $647 million
But the Minority Leader, Osei Kyei Mensah Bonsu, gave some indication that the proposed $953 million for the deal was actually capped at $647 million. According to the Minority leader, “It is out there that Parliament is approving a 953 project which is inaccurate.”
“The report says that the project is capped at $647 million so let no one go out there and create the impression that Parliament did not do a good job and that Parliament approved a $953 million project cost instead of the $647 million.”
About the power deal
Documents that were made available to Citi News revealed that, the agreement for the 400MW combined cycle gas turbine power plant to be situated in Tema, will be executed by Early Power Limited, a company incorporated in Ghana only in October 27, 2014.
Early Power Limited entered into the agreement with the Government of Ghana, together with the Electricity Company of Ghana (ECG), Sage Petroleum Limited, Endeavor and EPL Holdings Cooperatie, UA, General Energy Investments (GE) IBV, and Quantum Gas Terminals.
The project will involved the development, ownership, operation and management of the 400 MW Combined Cycle Plant to be fueled by either Liquefied Petroleum Gas (LPG) or Natural Gas (NG) for a 25-year period by Early Power Limited in Tema, strategically close to the Tema Oil Refinery (TOR).
Beyond the 25-year period, the power plant will transfer to a nominated entity by the Government of Ghana at a purchase price of US$1.00.
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