Update Parliament On Reviewed Take Or Pay Energy Contracts – Mutawakilu To Ofori-Atta

The Ranking Member on the Mines and Energy Committee Of Parliament, Adam Mutawakilu has called on the Minister of Finance, Ken Ofori-Atta to update Parliament government’s intention to abolish or review the take or pay power purchase deal.

The shift in policy was one of the major announcements in the mid-year budget review in 2019.

The Damongo lawmaker made the remark when he spoke to the media on his expectations of the mid-year budget review scheduled for Thursday, July 23, 2020.

“The Minister of Finance in his last budget indicated that he will convert all PPA’s from take or pay to take and pay. As far as I am aware, there has not been any implementation of that and we expect him to explain to us why and if he has implemented it, to what extent. The other one is the waterfall mechanism. It has a lot of challenges, he should explain to us how he has implemented it and how happy are the independent power producers, VRA, ECG, GRIDCo, PURC in respect to that implementation of the waterfall mechanisms.”

Government to renegotiate 'take or pay' power contracts – Finance Minister

The government had indicated it will only pay Independent Power Producers for power the country consumes.

According to the Minister of Finance, Ken Ofori-Atta, government will renegotiate such agreements and will seek parliamentary ratification.

“All take-or-pay contracts will be renegotiated to convert to Take-and-pay for both PPAs and Gas Supply Agreements (GSAs). The government has resolved as follows: to convert all Take-or-pay contracts to Take-and-pay contracts.”

---citinewsroom