Energy Deal: AMERI Opens Up To Government Scrutiny

The Africa & Middle East Resources Investment Group LLC (AMERI) has stated that, its 2015 agreement with Ghana for the provision of a Power Plant in the heat of the country’s power crisis, offered the “best value for money” despite government findings that the $510 million deal was bloated by $150 million.

AMERI, in a statement following an appearance, before the Mines and Energy Committee of Parliament on Friday, however, said the government had the right to review the deal if it felt it was being ripped off.

“AMERI acknowledges that the Government of Ghana has every right to assess all public contracts for value of money or quality of delivery. The company strongly believes the project delivered on both. An independent report by renowned auditors PriceWaterhouse Coopers (PwC) found that, out of 7 similar projects, the Ameri plant at Takoradi offered the best value for money,” the statement said.

According to the committee charged to review, restructure and recommend areas of amendment of the AMERI power deal, AMERI in its agreement with Government dated February 10, 2015, is said to have charged Ghana significantly higher than what it was charged by the Turkish registered company, PPR, which financed and executed the project.

The Turkish firm pegged the total cost of the project at a maximum of $360 million.

AMERI committed to Ghana’s development

Despite the concerns, AMERI stressed its “commitment to remain a positive contributor towards Ghana’s economic development,” after the “transformative effect” of previous dealings with Ghana.

“AMERI restated that the 250MW gas power plant, built in Takoradi, had been constructed in record time, having taken only 4 months to install. More importantly, the project has had a transformative effect on the Ghanaian energy sector. Supplying close to 20% of Ghana's electricity, the plant is part of a successful wider push by the country for a more reliable and resilient energy market.”

The statement also noted that, AMERI’s CEO, Maher Al Alili, had defended the short-term five-year BOOT (Build, Own, Operate and Transfer) deal as the best option for Ghana.

“When we entered Ghana, the country was going through its worst energy crisis. The only option on the table for the Government was a rental deal, which offered no value for money to the country. We are proud to say that we are the only company working in the region which offered and delivered a short term 5 year BOOT (Build, Own, Operate and Transfer) solution, installed in record time the power plant features brand new, state of the art GE turbines.”

Go to court over AMERI deal – Jinapor dares gov't

Ameri’s response comes at a time when a former deputy Power Minister, John Jinapor, has called on the Member of Parliament of Adansi-Asokwa, K.T Hammond, to seek redress in court if he wants to challenge the validity of the AMERI deal.

K.T Hammond, on Wednesday, moved that Parliament withdraw the agreement due to what he calls “misrepresentations” by the company, when the deal was presented to the House under the Mahama Administration.

Find below the full statement
AMERI speaks at Parliamentary Committee hearing: “We are proud of our power plant”

Company welcomes opportunity to address Takoradi plant contract

Reasserts timely delivery and flawless supply record since operations began

Positively declares that the project was good value for money – cites PWC report

Spokesperson: 'We came to Ghana this week to reassert our commitment to this country and its people – we are proud of our power plant.'

ACCRA – Following a committee hearing at the Mines and Energy Committee at the Parliament of Ghana, Ameri Energy has today reiterated the positive effects of the Takoradi Gas Power plant. The company also iterated its commitment to remain a positive contributor towards Ghanaian economic development.

Today's hearing followed concerns by some MPs over whether the contract was correctly valued. Speaking to committee members, representatives of AMERI welcomed the opportunity to address the committee and hear their concerns.

AMERI restated that the 250MW gas power plant, built in Takoradi, had been constructed in record time, having taken only 4 months to install. More importantly, the project has had a transformative effect on the Ghanaian energy sector. Supplying close to 20% of Ghana's electricity, the plant is part of a successful wider push by the country for a more reliable and resilient energy market. Blackouts are now much rarer.

AMERI CEO Maher Al Alili said:
“Ameri prides itself on the partnerships that we forge across the world, supplying power to countries when they need it most. As a responsible organisation, we appreciate the chance to address any misconceptions about our work in Ghana. Only from a point of mutual understanding and cooperation with all stakeholders can we move forward.

When we entered Ghana the country was going through its worst energy crisis. The only option on the table for the Government was a rental deal, which offered no value for money to the country. We are proud to say that we are the only company working in the region which offered and delivered a short term 5 year BOOT (Build, Own, Operate and Transfer) solution. Installed in record time the power plant features brand new, state of the art GE turbines.”

AMERI acknowledged the Government of Ghana has every right to assess all public contracts for value of money or quality of delivery. The company strongly believes the project delivered on both. An independent report by renowned auditors PriceWaterhouse Coopers (PwC) found that out of 7 similar projects, the Ameri plant at Takoradi offered the best value for money.

Commenting, Mr Al Alili said: 'Our facility offers the lowest levelized tariff of any thermal plant in Ghana. This is something we are very proud of. Value for money has always been a huge priority for our work in Ghana. The project is on a fully financed basis, with no sovereign guarantee from the Government, and a standby letter that covers less than 10% of the project value – Ameri have borne the majority of the financial risk.'

'More importantly, the project delivered. Built at record speed, our company helped plug the energy deficit at a time of emergency. This plant remains the most reliable energy supplier to the country with not a single shutdown. Its contribution to Ghana's energy supply remains substantial.'

Mr Al Alili also stated: 'We came to Ghana this week to reassert our commitment to this country and its people. However, we are also aware that cases such as these have the potential to undermine investor confidence in Ghana.

We hope this is the beginning of a positive and constructive dialogue, one that continues to ensure a reliable and economical energy supply for the Ghanaian people.'