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07.08.2019 Headlines

Ignore Terkper, Jinapor’s Misleading Claims On Our agreement With ECG– Bui Power

By Staff Writer
Ignore Terkper, Jinapor’s Misleading Claims On Our agreement With ECG– Bui Power

The Bui Power Authority has countered claims by two former Ministers that the Authority signed a take and pay agreement with the Electricity Company of Ghana (ECG).

Both the former Minister of Finance and Deputy Minister of Power, Seth Terkper and John Jinapor had suggested that the Bui Dam and other agreement signed under the NPP era were on “take or pay” basis.

The Finance Minister, Seth Terkper told Umaru Sanda Amadu on Eyewitness News that, “this [take or pay arrangement] is not something unique to the Mahama Administration. It is not unique to the Mills administration. Bui Dam, Sonon Asogli and others that were signed under the NPP era are on 'take or pay'.”

The Authority in a statement however clarified that contrary to what the two Ministers had suggested, the Authority signed a “take and pay” agreement and not a “take or pay” one.

“We wish to unequivocally state that the PPA between the BPA and the ECH is a ‘Take and Pay’ agreement and not a ‘Take or Pay agreement as being asserted by the two former Ministers.”

“Indeed, the Section 3 of BPA’s PPA with the ECG (Scope of Agreement) states that the seller (BPA) shall within the terms of the Agreement, supply and sell energy to the Buyer (ECG), and the Buyer shall take and purchase energy from the Seller under the conditions established’…It is therefore misleading for the two former Ministers to suggest that the arrangement was a Take or Pay agreement instead of Take and Pay.”

Ghana pays a number of IPPs for power supplied including those not consumed under a “Take or pay” agreement.

The Finance Minister, Ken Ofori-Atta while delivering the 2019 Mid-Year Budget Review in Parliament however said the government will from August 1, 2019, pay Independent Power Producers for only power the country consumes.

The minister stressed that such an arrangement cost the country nearly $500 million every year, noting that the government will ensure that all of such contracts are renegotiated in the interest of the country.

“All take-or-pay contracts will be renegotiated to convert to Take-and-pay for both PPAs and Gas Supply Agreements (GSAs). Government has resolved as follows: to convert all Take-or-pay contracts to Take-and-pay contracts,” Ken Ofori-Atta said.

---citinewsroom

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