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Terminate some power agreements – ACEP to gov’t

imagesEnergy think-tank has urged the Nana Addo-led government to cancel agreements with Independent Power Producers (IPPs) who have not been able to raise funds after signing the agreement.

The Head of Policy Unit at the African Center for Energy Policy (ACEP), Dr. Ishmael Ackah explained that most of the agreements were reached at a period when the country was going through energy crisis and since some of the IPPs were not performing it was better to cancel their agreements.

“So we signed a contract with you three years ago when we were having these challenges and three years after when the situation is becoming a little stable you still not perform  your part of  the deal then it is better we either cancel it or convert it to a normal thermal plant agreement,” he said.

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“Normally under such agreements, we pay for high capacity charges and it so many with many emergency plants. Some of the IPPs, the agreement we signed was that we signed it more like an emergency plant agreements,” he added.

When Ghana was going through the power crisis under the Mahama led administration, government signed agreements with a number of independent power producers under a situation of emergency.

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However, former Finance Minister Seth Terkper before he left office revealed that government has put a halt on signing new power agreement with independent companies.

But Dr Ackah said the IPPs signed must be cancelled of reviewed to save Ghana some money.

Source: http://pulse.com.gh/business/new-government-terminate-some-power-agreements-acep-to-gov-t-id6059206.html

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