Fishy Agreement GNPC $100 Million Deal Stinks

The minority in parliament has called for an investigation into an agreement between the ECG and Karpowership to mitigate power generation.

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

It has emerged that the Attorney General (AG) and Minister for Justice advised the Ghana National Petroleum Corporation (GNPC) that it was not within the corporation’s statutory mandate to provide loan guarantees to other entities – whether public or private.

This was in respect of the ongoing public-private partnership (PPA) agreement between the Electricity Company of Ghana (ECG) and Karpowership of Turkey over the emergency power barges or ships to mitigate the power generation deficit in the country.

In a Daily Guide report, it says the presidency has coerced the GNPC to issue the $100 million bank guarantee since the government says the ECG, which is signing the agreement, is not liquid enough to take up the deal.

To make matters worse, the National Democratic Congress (NDC) government is bypassing parliament to push the deal through.

There have been arguments over the suitability of the GNPC abandoning its core mandate of oil exploration and development and entering into the power sector, and others have wondered how the corporation was going to find the requisite funds to guarantee for the ECG in the first place.

Meanwhile Member of Parliament for EffutuAlexander Afenyo-Markin moved the proposal on the floor asking the House to investigate the power purchase agreement because it lacked Constitutional backing.

He contended that the $100 million Government guarantee for the ECG’s 50 million dollars counterpart funding of the agreement needed parliamentary scrutiny and approval in accordance with Article 181 (5) and (6) of the 1992 Constitution.

The MP said government must not be allowed to go ahead with the deal until it is fully scrutinised and due diligence is done.

“If government remains adamant we will take the matter to the Supreme Court because we must not encourage government to breach the constitution,” he stated.

He said the House will consider a court action if government fails to brief members on the deal.

Parliament has summoned Power Minister, DrKwabena Donkor and Finance Minister, Mr Seth Terkper to brief the House on the power purchase agreement between the Electricity Company of Ghana and Karpowership Company for the deployment of 450 megawatts of power.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos