Gov’t seeks approval for another ‘exorbitant’ power deal

The Mahama administration is set to stampede yet another questionable power deal through Ghana's Parliament at the expense of already overburdened power consumers.

The deal, currently before the Mines and Energy Committee of Parliament, appears to be another desperate attempt by the government to contain Ghana's ever biting power crisis which, according to analysts, continues to suffocate business and household activities around the country.

The two-decade long power deal with Early Power Limited, will see the construction, fuelling and maintenance of a 400 megawatts power plant at a total cost said to be 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 600 million dollars.

But, the agreement with Early Power Limited is earmarked to cost nearly 1 billion dollars in all expenses.

Although the government of Ghana is not expected to pay for the cost of constructing, fuelling and maintaining the pant, Ghanaian power consumers are expected to pay, ultimately, for the entire cost of the transaction through power bills they will pay to the Electricity Company of Ghana (ECG) over time.

Already, power consumers are quivering under the crippling weight of prevailing power tariffs forced on them since January, by the arrival in Ghana of the Karpower plant from Turkey and the Ameri Power Plant from the United Arab Emirates.

Again, a toxic mix of high levies and taxes that make up the Energy Sector Levies have kept the cost of power at exorbitant levels said to be killing businesses and sucking poor household consumers dry.

Already, Ghana's installed capacity is more than 3,000 megawatts, but the nation is unable to produce 50 of the installed capacity to ensure the lights remain on.

The power deal is expected to be approved in the next few days.

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By: Richard Dela Sky/citifmonline.com/Ghana