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The Minority in Parliament has vowed to scuttle moves by the government to “terminate and replace” the controversial AMERI deal.
The government on Wednesday laid a paper in Parliament for the amendment of the controversial $510 million AMERI deal.
According to documents sighted by Starrfmonline.com, the government plans to hand over the deal to a new company Mytilineos International Trading company AG subject to parliamentary approval of the new bill which it claimed will lead to the savings of $405 million dollars to the state in the new deal.
The Energy Ministry laid the agreement on the floor Wednesday seeking a revision of the original $510 million deal signed by the Mahama administration.
The government in the new agreement will pay Ameri $39 million while the new entity will also pay $52 million to Ameri on behalf of the government of Ghana.
Portions of the document stated that “reference is made to the public outcry in connection with the AMERI BOOT Agreement, coupled with the discussion of the issue in Parliament regarding the cost of the project.
“Much as the Ministry of Energy appreciates the importance of adequate power supply for the socio-economic development of the country, the Ministry is also very much concerned about the cost of the project in order not to overburden the citizenry with a high cost of electricity.
“As a result, the Ministry initiated discussions with the parties and renegotiated the lens of the BOOT Agreement in line with affordability and financial sustainability. These discussions were preceded by the formation of a Committee by the Minister for Energy to review the BOOT Agreement.
“The Ministry has therefore established a new contractual framework safeguarding the agreement of power and the continuous of the proper operation and maintenance of the plants by an experienced company, Mytilineos International Trading company AG for a term of 15 years from the novation and amendment agreement effective date, during which the provision of operation and maintenance services and all related services shall be undertaken by the company.”
“The GoG in view of the aforementioned purpose also wishes to adjust the contract price accordingly and establish a new financial equilibrium to reflect the extension of the term for the provision of the services and the performance of the obligations under the original BOOT agreement,” the document added.
The Minority, however, argues that Ghana will be worse off with the proposed new deal.
“I have just looked at it and we are yet to meet the Minister. But from what I have looked at unless the Minister is able to convince me beyond reasonable doubt, I believe that we are worst off,” the Minority spokesperson on Energy Adam Mutawakilu told Starr News’ Parliamentary correspondent Ibrahim Alhassan.
Asked on what basis he said Ghana would be worst off, he said “there are a lot of bases. But I can’t make them available now.”
He said the claim by the Minister that government will be saving a staggering $405million should the new deal come into force is untenable.
“I beg to differ on it [$405million savings]. I believe that we are going to pay more, not to make savings. We are going to incur more per the analysis that I have done. But I need the Minister to prove me beyond reasonable doubt on what analysis he did and had the savings,” he stated.
Former Deputy Minister of Power John Jinapor reiterating the views of Mr. Mutawakilu said the claim of saving $405million is a façade.
“What kind of voodoo economics is this? What kind of voodoo financial analysis is this? I am telling you in two years’ time Ghana is going to own this plant [Ameri plant]. It is our plant forever. We can choose to sell it at the cheapest price. I have done all the analysis. I have the net present value of the cash flows, I have done the internal rate of return of the cash flows and all the simulation under this,” he stated on Starr Today.
He added, “There are serious infractions. This is incompetence and I find it extremely disturbing this government can go and negotiate this bad deal and present it to us and say that you are making savings. Savings from where?”