Government is set to conduct an audit of all Power Purchase Agreements (PPA) signed between the Electricity Company of Ghana(ECG) and Independent Power Producers(IPPs) under the erstwhile National Democratic Congress (NDC) government, President Nana Akufo-Addo has hinted.
According to him, the erstwhile John Mahama government had signed 43 PPAs, while a further 23 were under discussion.
Delivering his first State of the Nation Address in Parliament on Tuesday, President Akufo-Addo maintained that, a review is necessary to renegotiate or cancel some of the power agreements.
“Government is conducting a review of all the Power Agreements entered into by the previous government in order to prioritize, renegotiate, defer or cancel outright, if necessary, in the national interest,” the President said.
He further assured that, government has commenced moves to develop a national electricity master-plan to avert a power crisis (dumsor).
“Overall, we have begun developing a national electricity master-plan, which will also explore the benefits of listing VRA and GRIDCO on the Stock Exchange,” he stressed.
Outlining measures to enhance transparency in the power sector, President Akufo-Addo stated that, government will embark on a competitive bidding process to select partners.
“My government will enforce the procurement law. We will insist on open and competitive bidding for power capacity procurement. This will not only reduce the cost of power projects and ensure value for money, but will also address the problem of unplanned procurement,” he said.
PPAs that generated controversies
Some of the power purchase agreements that generated controversies were the KarPowership agreement and the AMERI Power deal.
Debt in power sector
Giving out some figures, President Akufo-Addo disclosed that, the NPP government inherited a total net debt reaching 2.4 billion US dollars as at December 2016.
“ I have to point out the alarming fact that 800 million US dollars of this debt is owed to local banks, which threatens their stability and that of the whole financial sector. Indeed, the huge indebtedness of the energy sector constitutes the single major hurdle to Ghanaians enjoying reliable and affordable electricity supply,” he said.
Source: citifmonline.com
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Stuooopiid Jonathan Lagos if we don't Strengthen our local companies and we rely on these foreign ones how can our country develop. wo ye kwasiaaaaaa paaaao, if you don't have anything to say then keep your stinkiiing vocal cavity shut. Aboaaaa bi ba.
Do forensic audit of all the contracts and punish all those" 10 percenters" Mr President keep on the good work
Name the pure water sellers that are on Wall Street. I'm waiting.
K....W..S..1...AAAAAA... SO LISTING VRA AND GRIDCO ON THE STOCK EXCHANGE IS A MASTER PLAN???? WHEN EVEN PURE WATER MANUFACTURERS ARE ON WALL STREET..... COMPETING WITH CONGLOMERATES... AND YOU ARE HERE TALKING OF GHANA STOCK EXCHANGE..... ARE YOU SERIOUS AT ALL???? AND THIS IS WHAT BEATS MY IMAGINATION,,,,, THAT PEOPLE WHO THINKS,,, REALLY VOTED THIS THING...... IN A POST MODERN SOCIETIES WHERE PEOPLE ARE LOOKING UP FOR GENERATIONAL THINKERS,,,, GHANA WENT TO THE POLLS AND VOTED THIS RUBBBBBISSSS TO LEAD THEM... NIGERIA WENT AND VOTED A HALF DEAD MAN,,,, MEANWHILE THESE TWO COUNTRIES WERE SUPPOSED TO BE THE TORCH BEARERS IN THE SUB REGION...TWO BLOCK HEADED COUSINS,,,, SO THE REFUSED TO LEARN FROM THEIR MISTAKES.... YA'R ADUA,,, YAA MUTU,,, PROF. MILLS,,, DUKA DAYA.... NOW NIGERIA BROUGHT A HALF DEAD,,, GHANA BROUGHT A VEGETABLE.... NA WAA FOR UNNA OOO..
More judgement debts in the making. Can there ever be a sane president who would Ghana first and do away the silly demonization of political opponent? It's time presidents were stripped of indemnity clauses so they can held accountable for all financial impropriaty and any losses caused to the tax payer.
Good one mr President