Ranking Member of the Mines and Energy Committee, John Jinapor, has said that the agreement between the Ghana National Petroleum Corporation (GNPC) and Genser Energy Ghana Limited (GEGL) for the combined gas and pipeline infrastructural project is bad.
He has rejected the report of the Parliamentary Select Committee on Mines and Energy that found no evidence of any losses from the deal, concluding an investigation into unfounded claims of irregularities.
The investigation was initiated in response to claims made by the African Centre for Energy Policy (ACEP) and the IMANI Center for Policy and Education in July 2022, alleging incorrectly that the deal incurred a loss of $1.5 billion for the nation. The Committee’s report instead found benefits for Ghana far exceeding that sum.
The ACEP and IMANI reports raised concerns over a Gas Sales Agreement (GSA) between GNPC and Genser Energy Ghana Limited (GEGL), asserting that Ghana stood to lose the “whopping and galactic sum of $1.5 billion” due to this arrangement.
The allegations raised by ACEP and IMANI claimed GNPC sold gas to Genser at significantly reduced rates compared to its purchase price, resulting in a perceived subsidy.
Following an 11-month-long investigation, the Parliamentary Committee has refuted the claims made by ACEP and IMANI, stating that the GSA is not a “sweetheart contract.”
The Committee found the computation methods used by ACEP and IMANI faulty. The CSOs calculated a hypothetical loss based on the contractual sum of $2.79/MMBtu. But that price reflects offsets from a capacity charge of $3.29/MMBtu.
The Committee found the arrangement much to the nation’s benefit, presenting 11 key economic advantages associated with the deal ranging from energy security to job creation; from the development of future industries to foreign direct investment.
But speaking on the Hot Edition on 3FM Tuesday, August 22, Mr. Jinapor who is also a Member of Parliament for Yapei Kusawgu said “The report by the Chairman of the Committee does not reflect the entirety of the committee. The report is clear that some of us disagree with the position vehemently.
“Some people should get to know how Parliament works. There are three kinds of decisions, you can take a decision by consensus, which means that the whole committee agrees and the decision can be taken by a majority which means that there was a vote and some said no, some said yes, and those who said yes, because they are many it oversides.
“I am among the category that said no, this deal is not a good deal, it is a bad deal, it leads to losses, it is untenable.”