Early Power Limited to Construct, Fuel and Maintain 400MW Power Plant
Parliament today [Wednesday] passed a US$647 million power deal that will see Early Power Limited construct, fuel and maintain a 400 megawatt power plant.
Citi News’ Duke Mensah Opoku reported that the 20-year deal was passed amidst vehement opposition from the Minority in parliament.
Concerns had been raised that the stated total cost is exponentially higher than the average international cost of constructing such a plant in the industry.
Industry watchers say a 400 megawatt plant should on average cost around US$600 million.
Deal capped at $647 million
The Deputy Minister of Power, John Jinapor had been defending the power deal when it was proposed and he made further attempts to assure the House that it was in the interest of end users and also government.
He also noted that the amount was capped at $647 million.
According to Mr. Jinapor, “It is out there that Parliament is approving a $953 million project which is inaccurate.”
“The report says that the project is capped at $647 million so let no one go out there and create the impression that Parliament did not do a good job and that Parliament approved a $953 million project cost instead of the $647 million.”
About the power deal
Documents that were made available to Citi News revealed that, the agreement for the 400MW combined cycle gas turbine power plant to be situated in Tema, will be executed by Early Power Limited, a company incorporated in Ghana only in October 27, 2014.
Early Power Limited entered into the agreement with the Government of Ghana, together with the Electricity Company of Ghana (ECG), Sage Petroleum Limited, Endeavor and EPL Holdings Cooperatie, UA, General Energy Investments (GE) IBV, and Quantum Gas Terminals.
The project will involved the development, ownership, operation and management of the 400 MW Combined Cycle Plant to be fueled by either Liquefied Petroleum Gas (LPG) or Natural Gas (NG) for a 20-year period by Early Power Limited in Tema, strategically close to the Tema Oil Refinery (TOR).
Beyond the 20-year period, the power plant will transfer to a nominated entity by the Government of Ghana at a purchase price of US$1.00.