Parliament ratifies PPPC agreement between Gov't & Amandi Energy Ltd 


Parliament has ratified a power producing project Consent (PPPC) agreement between the Government of Ghana and the Amandi Energy Limited. 

The project involves the development, ownership, operation and management of a 190 to 240 Megawatts Combined Cycle dual Power Plant to be located at Aboadze in the Western Region. 

The project cost is estimated to range from 409 million to 528 million Dollars depending on the Megawatts of power to be produced.
 
Radio Ghana's parliamentary Correspondents Dominic Hlordzi and Augustus Acquaye report that the power agreement forms part of efforts by government to increase installed capacity of the country’s electricity generation from the current 2 thousand to five thousand megawatts by 2016. 

According to the Generation master plan, peak demand for 2015 is projected at 2,200 megawatts which implies that during 2015 electricity demand will outstrip the current power generation of about 200 megawatts. 

It is in respond to this that the Electricity Company of Ghana and Amandi executed a power purchase agreement under which Amandi agrees  to supply to ECG a power plant capacity of between 190-240 megawatts over a 25 year period. 

Amandi as part of the arrangement requested for government support in a form of gurantee to back-up ECG payments since one of the key challenges facing the development of private power plants in Ghana is bankability. 

Presenting the report of  the Finance Committee for the approval of the agreement, the Chairman of the Committee James Avedzi said the project will be financed on a limited resource project financed basis with debt to equity ratio of 75:25 to be reviewed to 70:30 in 3 to 4 years after the commercial operation date. 

The Ranking Member on the Finance Committee and MP for Old Tafo Dr. Anthony Akoto Osei said the initial power purchase agreement should be brought to Parliament.


The Minister of Energy and Petroleum Emmanuel Armah Kofi Buah said  Amandi has already acquired the needed license to operate.


Another agreement relating to the production of a 360 Megawatts combined cycle dual fuel power plant facility at the cost of 637 million dollars at Abloadze has also been approved by the House. It is between the government and Jacobsen Jelco Ghana Limited.


GBC