AMERI Deal AMERI Power agreement was not fraudulent - Omane Boamah

The committee chaired by lawyer Philip Addison recommended to the government that it should call back owners of the company for renegotiation.

  • Published:
Former Minister of Communication, Dr Edward Omane Boamah play

Former Minister of Communication, Dr Edward Omane Boamah

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The former Minister of Communications,, Dr Edward Omane Boamah has said the AMERI Power Agreement procured by the previous government was clean and not fraudulent as claimed by the committee tasked to probe the controversial AMERI Power Agreement.

The 17-member ministerial committee inaugurated to probe the agreement said the previous government through sole-sourcing questionably procured the power deal and has concluded that it was not only grossly unfair to the interest of Ghana, but could also be considered as fraud.

READ MORE: Here is the full report on the $510m fraudulent AMERI deal

The committee chaired by lawyer Philip Addison recommended to the NPP government that it should call back owners of the company for renegotiation.

The chairman also recommended that the "government of Ghana should repudiate the agreement on the grounds of fraud" since Ameri Energy refused to come to the negotiation table.

 

But Edward Omane Boamah stated that claims of overpricing "cannot hold because plants are not sold at ex-factory prices. Moreover, in Ghana thermal plants are normally not procured directly from the manufacturers. Eg. KTPP, TT1PP, Tico etc."

READ ALSO: NPP reveals more fishy deal on AMERI

He said "Per the agreement with AMERI, the government of Ghana through the Volta River Authority (VRA) will only make payments to AMERI for power produced and supplied to the VRA just like any other Independent Power Producer (IPP)."

He added that the findings of the committee, "chaired by a known NPP fanatic were not surprising since "it is well-known the NPP made it clear before the elections that they were determined to find faults with the AMERI deal at all cost."

Read below the full statement from Dr. Edward Omane Boamah:

AMERI AGREEMENT WAS CLEAN AND HELPED SOLVE DUMSOR
—————————————————————–

The agreement with AMERI is a Build, Own, Operate and Transfer (BOOT) agreement and not an outright purchase of generating plants by the government of Ghana.

Government of Ghana made no payments to AMERI prior to the Procurement, Installations and delivery of power by Ameri.

READ MORE: NPP Committee report on AMERI power deal political - John Jinapor

Per the agreement with AMERI, the Government of Ghana through the Volta River Authority (VRA) will only make payments to Ameri for power produced and supplied to the VRA just like any other Independent Power Producer (IPP).

Indeed VRA will pay through tariffs charged on the end consumer.

Also, per the agreement, Government was required to provide a standby Letter of Credit (LC) for an amount of US$51 million, which LC has been raised.

The committee set up by the Minister of Energy was chaired by a known NPP fanatic, Mr. Phillip Addison.

It is well-known the NPP made it clear before the elections that they were determined to find faults with the Ameri deal at all cost. Hence one is not surprised by their conduct.

The committee never contacted or spoke to any former minister or appointee of the NDC for clarification, thereby making the report one-sided. At least natural justice demands that!

***When compared to seven (7) comparable plants in Ghana, the composite generation tariff for the AMERI project of about USc14.59kWh is lower than the average approved composite tariff for the seven plants at USc14.94kWh.

READ MORE: Ghana to lose $9.9 million to AMERI power plant

5years versus 20years compared (levelised)
………………………………………………………………

***The levelised tariff for AMERI is the lowest (USc11.46kWh) compared to the tariffs for seven (7) comparable plants.

play Former Power Minister, Kwabena Donkor

 

‘Levelised tariff’ is the approved tariff adjusted over the concession/contract period. In other words, when comparing the AMERI project (contract period of 5 years) to the other plants that have a concession or contract period of twenty (20) years, you either have to spread AMERI’s cost over a 20-year period.

Or, compact the other plants’ cost into a five-year period, to be able to make an acceptable comparison.

The 3 options: namely, Outright purchase, Rental and BOOT.

READ ALSO: Ghana loses $8.3 million on dormant Ameri plant - NPP

Nominal costs for the 3 options are US$438.9m, US$477.3m and US$516.3m respectively.

• GoG could not choose the option of outright purchase because we did not have the funds.

• For the rental option, it meant GoG will not own the plant.

• BOOT will result in GoG owning the plant at the end of five years. This would help develop the capacity of the country’s power generation company and increase the portfolio of generating plants in the country.

The thermal generation plants are not sold off the shelves and could take up to a lead time of 2 years to procure these plants. This certainly defeats the emergency solution for dumsor envisaged.

The Deputy Attorney general was part of the negotiation team and even witnessed the agreement so there was no need for another legal opinion.

Engineers and Planners was awarded a contract to prepare the site for the installation of the plants. GoG has paid E&P for all works undertaken to date by Engineers and Planners. It is therefore not true they have been paid for no work done.

Ameri has so far performed above the guaranteed performance at site conditions. The power outputs of the 10 units were between 26,322kW and 27,222kW, the net of which is higher than the Guaranteed Net Power Output of 256,347kW in the agreement.

The Ameri technology is well-proven with more than 1,800 units deployed worldwide and almost 69 million hours of operation. Its modular concept and factory-tested components allow for fast installation. This technology therefore lends itself to emergency applications.

AMERI has successfully provided the 250MW fast track power generation solution via the installation of ten (10) GE TM 2500 aero derivative gas turbines in Ghana (“the Project” or “the AMERI Project”) which has impacted positively on the generation capacity in the country.

The NPP and Philip Addison concocted 150 million dollar overpricing allegation cannot hold because plants are not sold at ex-factory prices, moreover in Ghana thermal plants are normally not procured directly from the manufacturers. Eg. KTPP, TT1PP, Tico etc.

Ameri took the decision to assume the risk by procuring, installing, operating and maintaining these plants with the hope of recovering their investment through tariffs over five years after which Ghana takes delivery and ownership of these plants. Government of Ghana took no such risk.

From the foregoing reject The NPP cooked Philip Addison Committee Report. It is a hatchet job initiated by Mr. Boakye Agyarko.

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