VALCO: Govt Loses $30.4 million

The Volta Aluminum Company (VALCO) has enjoyed and continues to enjoy a power rebate of US$30.4 million due to the NPP Government's refusal to implement the previous NDC government negotiated VALCO agreement or renegotiate a new one. The Ghana Palaver newspaper says in the last days of the NDC government, the then Minister of Energy submitted to Parliament, a concluded agreement negotiated between the Ghana Government negotiating team and VALCO. The agreement was reached after two years of negotiations. Among the issues negotiated were increased tariffs for electric power consumed by VALCO. The negotiated tariffs would have taken effect from 1st January 2000 had Parliament approved it at the time. The tariff proposal was approved by the then NDC Cabinet but the NPP government has refused to consider it, thus letting VALCO off the hook and instead burdening consumers with high tariffs.