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Value for Money 250MW Dubai Plants are a financial loss to the State- ACEP

According to ACEP the amounts government is paying for the five year- lease of these plants is way more expensive than the amount it will cost to purchase them outright.

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Whereas it may come as a positive news to many Ghanaians that the Volta River Authority has taken delivery of the much awaited 250 Mega Watts Thermal Plants from Dubai, energy policy think-thank, Africa Center for Energy Policy have raised concerns over the amounts money government is set to pay as rent for the thermal plants.

According to ACEP the amounts government is paying for the five year- lease of these plants is way more expensive than the amount it will cost to purchase them outright.

In an exclusive interview with Pulse Business, Head of Operations at ACEP, Benjamin Boakye asserted that

" After careful analysis of the contract and financial obligations government has entered into in acquiring these thermal plants, we have drawn the conclusion that government did not get the right deal for the country.  In leasing these thermal plants for 5 years, government is paying a total sum of 700 million dollars, which could have been used to purchase the plants."

According the Mr. Boakye, checks by ACEP reveals that government could have bought those same plants for 500 million dollars.

" So you see, the lease was completely unecessary. Why lift equipment at price that it cost to buy your own. We have therefore concluded that government did not do a proper cost and benefit analysis, or value for money audit of their decision tot rent the  plants."

Pulse Business: Could it not be because of the urgency of the need to curb the current energy crisis?

Mr. Boakye: Well, we expect governmetn to take the right decisions in the interest of the citezenery under every circumstance. We believe government could have taken a much better decision even given the situation.

Government has reached final stages of merging the Bulk Oil Storage and Transportation Company Limited with the task of propelling the collapsed Oil Refinery back to productivity. This include,  CENNIT Power Plant in Takoradi, and the VRA Kpone Thermal Plant. What government needs to do is to intensify efforts to complete these projects.

The Volta River Authority (VRA) at the weekend received a 250-megawatt (MW) plant from Africa and Middle East Resource Investment (AMERI) based in Dubai to augment the country’s power mix.

The plant has come in good time for the country’s power sector, with another relief, the Karpower ship from Turkey with 225MW, also due next month.

The AMERI plant, which is made up of 10 power units, will be installed and hooked to gas from the Ghana National Gas Company (Ghana Gas) as its fuel.

The 10 power units, each with a capacity of 25MW, will be moved to the Aboadze Thermal Power Enclave.

The AMERI plants are different from the two 225MW Karpower ships expected in the country in the first week of next month.
 

 

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