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We gave Ghana value for money when it was in worst energy crisis – Ameri

The Ameri deal was signed in 2015

Ameri Energy has defended its $510 million power deal with the government of Ghana, insisting that the company gave the country value for money in that contract.

Government of Ghana entered into the Build, Own, Operate and Transfer (BOOT) Agreement dated February 10, 2015.

But when the New Patriotic Party government assumed office, it commissioned a committee to investigate the deal. The committee’s report said the contract does not serve the “best interest of Ghana” and made some recommendations to government. The credibility of the report was challenged by the Minority NDC in Parliament. Read the committee’s report

A motion was later filed in Parliament by MP for Adansi Asokwa Constituency Kobina Tahir Hammond, who was the Ranking Member of the Mines and Energy Committee, in 2015 when the deal was struck asking for a review.

This was referred to the Mines and Energy Committee of Parliament to review the contract but the minority rejected the move.

AMERI in a statement on Friday admitted that government has every right to assess the 250MW gas power plant deal built in Takoradi.

“AMERI acknowledged the Government of Ghana has every right to assess all public contracts for value of money or quality of delivery. The company strongly believes the project delivered on both. An independent report by renowned auditors PriceWaterhouse Coopers (PwC) found that out of 7 similar projects, the Ameri plant at Takoradi offered the best value for money.”

The company said when it entered  Ghana the country was going through “its worst energy crisis”.

See the statement below

Following a committee hearing at the Mines and Energy Committee at the Parliament of Ghana, Ameri Energy has today reiterated the positive effects of the Takoradi Gas Power plant. The company also iterated its commitment to remain a positive contributor towards Ghanaian economic development.

Today’s hearing followed concerns by some MPs over whether the contract was correctly valued. Speaking to committee members, representatives of AMERI welcomed the opportunity to address the committee and hear their concerns.

AMERI restated that the 250MW gas power plant, built in Takoradi, had been constructed in record time, having taken only 4 months to install. More importantly, the project has had a transformative effect on the Ghanaian energy sector. Supplying close to 20% of Ghana’s electricity, the plant is part of a successful wider push by the country for a more reliable and resilient energy market. Blackouts are now much rarer.

AMERI CEO Maher Al Alili said:

“Ameri prides itself on the partnerships that we forge across the world, supplying power to countries when they need it most. As a responsible organisation, we appreciate the chance to address any misconceptions about our work in Ghana. Only from a point of mutual understanding and cooperation with all stakeholders can we move forward.

When we entered Ghana the country was going through its worst energy crisis. The only option on the table for the Government was a rental deal, which offered no value for money to the country. We are proud to say that we are the only company working in the region which offered and delivered a short term 5 year BOOT (Build, Own, Operate and Transfer) solution. Installed in record time the power plant features brand new, state of the art GE turbines.”

AMERI acknowledged the Government of Ghana has every right to assess all public contracts for value of money or quality of delivery. The company strongly believes the project delivered on both. An independent report by renowned auditors PriceWaterhouse Coopers (PwC) found that out of 7 similar projects, the Ameri plant at Takoradi offered the best value for money.

Commenting, Mr Al Alili said: ‘Our facility offers the lowest levelized tariff of any thermal plant in Ghana. This is something we are very proud of. Value for money has always been a huge priority for our work in Ghana. The project is on a fully financed basis, with no sovereign guarantee from the Government, and a standby letter that covers less than 10% of the project value – Ameri have borne the majority of the financial risk.’

‘More importantly, the project delivered. Built at record speed, our company helped plug the energy deficit at a time of emergency. This plant remains the most reliable energy supplier to the country with not a single shutdown. Its contribution to Ghana’s energy supply remains substantial.’

Mr Al Alili also stated: ‘We came to Ghana this week to reassert our commitment to this country and its people. However, we are also aware that cases such as these have the potential to undermine investor confidence in Ghana.

We hope this is the beginning of a positive and constructive dialogue, one that continue to ensure a reliable and economical energy supply for the Ghanaian people.’

Read also: Minority not happy with Speaker as members walk out

Source: 3news.com | Ghana

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