A former Energy Minister, Boakye Agyarko, has said Ghana is fortunate to have been slapped with a $170 million judgment debt for the termination of the power agreement between the state and an independent contractor, Ghana Power Generation Company (GPGC).
GPGC won a 170 million dollar judgment debt against the Government of Ghana at the London Commercial Court of international arbitration earlier this month for the government’s decision.
Attorney General Godfred Dame, who was expected to mount a strong defense to save the country, has turned around to blame the erstwhile NDC government for the agreement, threatening to get the CID of the Ghana Police Service to investigate the officials that signed the agreement.
But former deputy Power Minister, John Jinapor has blamed Mr. Boakye Agyarko, who was the then Energy Minister, saying he failed to heed to wise counsel to renegotiate the deal
But in a Citi News interview, Agyarko has defended the government’s decision to terminate the said contract, saying the country would have lost more from excess power generation if the agreement had remained.
For that reason, he insists that Ghana is “better off” with this judgment debt…We have paid almost over $1 billion for excess capacity. The review committee estimated that the contract as they were if they were allowed to stand, the country will be paying at the end of the 13th year $7.2 billion in excess capacity charges.”
He continued, “Now if the country is going to be saddled with $7.2 billion for excess capacity, we needed to rethink. In the PPA review, what it said was that if we could get the termination and the management of all the excess capacity, the liability that we will be faced with is about $600 million out of pocket.”
“Now $600 million in year one compared to $7.2 billion, now even if you do the next present value calculation and bring the $7.2 billion into a one-year payment, we are still better off. I don’t understand why the people whose time these excess capacity contracts were signed now have the guts and the audacity to accuse people who are trying to manage the mess they created,” he added.