Jinapor tackles Akufo-Addo, Energy Minister. Atta Akyea, over stolen project and false claims

The Minority in Parliament, has punched President Nana Akufo-Addo over his attack on his predecessor at the commissioning of the 161kv Bulk Supply Point at Accra Central, saying he couldn’t be stealing former President John Mahama’s project and still insult him.
 
According to the Minority, former President Mahama, initiated the 161kv Bulk Supply Point at Accra Central along the Graphic Road in the Greater Accra Region, contrary to the impression created by the President Akufo-Addo and his Energy Minister, Matthew Opoku-Prempeh that it was an initiative of the current government.
 
The Minority in another statement also in the name of John Abdulai Jinapor, the Ranking Member of Mines and Energy Committee also slammed, the chairman of the committee, Samuel Atta Akyea, for using the platform of the committee to engage in “propaganda” by stating “his personal opinion whilst claiming he was speaking on behalf of the committee.
The Minority described Mr Atta Akyea’s claim as “disappointment” insisting his assertions that the previous John Mahama-led government energy agreements cost the nation over US$320 million for unused power in 2018 was a “very wild and baseless”.
On the 161kv project, the statement said that “the Minority has noted with serious concern the decision by President Akufo-Addo to attack the person of former President Mahama during the commissioning of the 161kv Bulk Supply Point at Accra Central, which President Mahama initiated. 
“For the record, the Mahama led government in 2014 requested for grant aid from Japan to construct the 161kv Bulk Supply Point to be located in the Central Business District of Accra, to adequately and reliably meet the high electricity demand in the area, which was growing at a rate higher than the system average of 10% per annum,” the ranking member on Mines and Energy Committee in Parliament, Mr. Jinapor narrated in a stated dated June 15, 2023. 
He continued: “We wish to emphasise that all the necessary, regulatory, financial and technical approvals were secured under President Mahama, with actual construction works commencing in 2016 before he handed over power to the current administration. This can be verified from the 2017 and 2018 GRIDCO Annual Reports as well as the “2015 Preparatory Survey Report on The Project for Power Supply To Accra Central In The Republic Of Ghana” published on the JICA website.”
President Akufo-Addo, on Tuesday took a swipe at former President Mahama, saying that his administration will continue to work hard to keep the lights on and that the Akufo-Addo government leaves “Dumsor” for former President Mahama and his erstwhile administration.
The President jabbed the former President in his address before commissioning the project saying “I want to reassure all of you that my government will continue to work towards keeping the lights on in spite of the global dynamics of energy pricing because the alternative is not an option.
“We are not going back to Dumsor, we leave that to President Mahama. I am convinced and confident that our nation is on the right path, despite our challenges and with God on our side, I have the firm believe that we shall succeed in this enterprise” President Akufo-Addo said.
“The project we are commissioning today is 161 kilo volts bulk supply point which delivers on government’s commitment to keep the lights on. It also guarantees stable, reliable and regular supply of electricity for the busy and bustling business district and surrounding areas” President Akufo-Addo added.
President Akufo-Addo, registered the appreciation of the government and the people of Ghana to the government and people of the Kingdom of Japan for their kind gesture.
“This project could not have become a reality without the generous grant from the Japanese government and its external agency, the Japanese International Development Agency (JICA), without Japanese technology and technological assistance. This project is an excellent illustration of the strong cooperation between the Republic of Ghana and the Kingdom of Japan which we cherish” President Akufo-Addo said.
The NDC Minority in response said “for the record, the Mahama led government in 2014 requested for grant aid from Japan to construct the 161kv Bulk Supply Point to be located in the Central Business District of Accra, to adequately and reliably meet the high electricity demand in the area, which was growing at a rate higher than the system average of 10% per annum.
 “It is therefore surprising that rather than commending his predecessor for initiating the New Bulk Supply Point, described as a game changer by the current GRIDCo Board Chair, President Akufo-Addo rather chose the occasion to make baseless, inaccurate and unfounded allegation against former President Mahama. 
 “If President Akufo-Addo truly wants to know who ended Dumsor, he may want to consult his own Vice-President, Dr. Mahamoud Bawumiah who is on record to have stated that Mahama ended Dumsor.
 “If President Akufo-Addo cannot recognise the enormous contribution of President Mahama in the energy sector, the least he could do was to refrain from such unwarranted attacks, particularly at a programme to commission a project which is the brainchild of President Mahama, as the saying goes “you do not bite the hand that fed you”. 
 “The Minority wishes to caution in the strongest terms possible that it will no longer tolerate such unwarranted and pedestrian attacks on President Mahama by this non-performing government in a desperate attempt to tarnish his image. 
 “It is an incontrovertible fact that President John Mahama laid a solid foundation in the Power Sector, with a clear vision of exporting Power as evidenced by the completion of the 330kv Kumasi – Bolgatanga Transmission Project, which has enabled Ghana to export power to neighbouring Burkina-Faso. 
 “On the contrary, the Akufo-Addo/Bawumiah led government, having added no value to the sector, will go down in history as the worst Government as far as the Power sub-sector is concerned. 
 Mr. Atta Akyea’s claim that some power purchase agreements signed by former President John Mahama in the heady days of the dumsor period, caused the state to pay $320 million for unused power in 2018 alone, is false and lacks basis, the ranking member of that committee, Mr John Jinapor, has said.
 Mr Atta Akyea had said the take-or-pay power purchase agreements have cost the state $968 million so far, in terms of payments for idle capacity and reserve margins.
 At a press conference in parliament on Wednesday, 14 June 2023, Mr Atta Akyea referred to the Ghana Integrated Power Sector Master Plan (IPSMP) and the Energy Commission’s work, which, according to him, showed significant overcapacity in the country’s energy sector.
 
“Under Generation and Demand of the 2019 IPSMP, the modelling results confirm that there is significant overcapacity in Ghana, that this overcapacity was expected to continue for 5 to 7 years when the power plants under construction are commissioned”, he said.
 
The report further noted, he added, that “the reserve margin in 2018 and 2019 were significantly higher than the planned reserve margin of 20%”.
 
Furthermore, he said “the overcapacity challenge is expected to continue into the mid-2020s”.
The Abuakwa North MP noted that “between 2017 and 2020, the annual cost of idle capacity ranged between US$ 105.4 million and US$ 373.7million per year”.
 
Over the period, he said “a total amount of US$ 368 million had been paid for idle capacities and a further US$ 600 million had been paid for the cost of reserve margins totaling US$968million”.
 
Mr Akyea, however, mentioned that some of the terms of the PPAs have been renegotiated.
 
For instance, he said: “We note that the AKSA Emergency Power Agreement (EPA), after expiration on 31 July 2022, was renegotiated by ECG with better terms for 15 years, with a dispatch guarantee of 40%. This is far better than the full take-or-pay arrangement under the expired EPA”.
 
With the 205MW AKSA PPA, Mr Akyea said the introduction of a dispatch guarantee has helped to beat down the cost incurred by the state, as far as the payment for excess capacity is concerned.
 
He explained that it is meant to provide “system reliability in the middle and the northern belts of the country based on a system reliability study by the Ghana Grid Company (GRIDCo)”.
 
“To achieve the objective of reliability, there is the need to have a level of guaranteed dispatch of the plant”, he noted.
 
He said the dispatch guarantee provided for in the new terms for contracting PPAs “is also a gradual means of reducing the cost of excess capacity payment that has plagued the sector from the numerous take or pay agreements”.
 
“The non-dispatch of this plant will save the country 60% of the cost compared to the original contract”, Mr Atta Akyea added.
 
In a rebuttal statement, however, Mr Jinapor said the minority caucus has noted “with disappointment”, Mr Atta Akyea’s “very wild” and “baseless” claims.
 
He said: “The surprising thing is that Mr Atta Akyea was reported to have been speaking on behalf of the Mines and Energy Committee”. 
 
“For the avoidance of doubt, the Mines and Energy Committee has never taken such a position”, the opposition MP noted. 
 
He said “neither has the committee mandated Mr Atta Kyea to speak on its behalf in respect of the Power Purchase Agreements (PPAs) signed under President Mahama which, with all intents and purposes, have proven to be the reason for Ghana’s current stable electricity supply”.
 
The statement said the “reported claim that the former administration entered into 43 take-or-pay Power Purchase Agreements resulting in the current government being obligated to pay over 320 million dollars in 2018 for unused power charges is not only false but a clear lack of appreciation of Ghana’s power sector”. 
 
The records from the Energy Commission’s 2018 Energy Statistics are available for verification, Mr Jinapor, who is the MP for Yapei-Kusawgu, added. 
 
He said from these records, “a total of 13 thermal plants operated in 2018, with only three (3) signed under President Mahama”. “How the New Patriotic Party and its communicators are able to concoct and embellish such unfounded payments for 43 take-or-pay power agreements in 2018 alone is shocking and mind-boggling”. 
 
“The minority wishes to caution in the strongest terms that it will not allow the name of the Mines and Energy Committee to be used for self-seeking and propaganda-laden political communication”.