Former Energy Minister, Boakye Agyarko has described as unfortunate and irresponsible some comments made by Dr. Kwabena Donkor with regards to a $140 million judgement debt the country has been hit with.

This was after the former Power Minister said parliament must probe all NPP officials who were involved in the decision to terminate the power purchase agreement with the Ghana Power Generating Company (GPGC), including the then-Energy Minister.

According to Dr. Kwabena Donkor, the termination of the GPGC contract “made no sense commercially and legally” at the time.

Speaking on PM Express on Tuesday, October 24, he also argued that the failure of the government to negotiate the termination and opt for reasonable options is to blame for the situation at hand.

But reacting to the claims by the Pru East MP, Mr. Agyarko said he is disappointed with the assertions by the former Power Minister who should know better.

Mr. Agyarko stressed that as the then Energy Minister, neither him nor his Ministry had the authority to cancel or terminate a contract of such nature.

“An Inter-Ministerial Committee was set up under the chair of the Energy Commission to review the fiscal and legal implications of Power Purchase Agreements (PPAs) executed by the Electricity Company of Ghana (ECG). The eighteen (18) member committee was chaired by Dr. Alfred Ofosu Ahenkora, Executive Secretary of the Energy Commission.

"Its report was submitted on 5th April, 2019 under ref EC/MOE/17.

“The report was subsequently put before Cabinet for consideration and action. Cabinet directed that the report be further reviewed by the Attorney-General. This was done.

"Cabinet subsequently gave its approval for the recommendation of the report to be implemented,” he explained.

Find the full statement from Boakye Agyarko below:

Background

Trafigura, the majority owner of the power company GPGC, secured the award (judgement debt) in January 2021 after an arbitral tribunal in London found that Ghana had unlawfully terminated a contract for the installation and operation of two power plants.

As a result, the Ghana High Commission building in the UK which provides visa and other services, the commissioner's residence, the Ghana International Bank building, and other properties are at risk of being auctioned to defray the $140 million judgment debt awarded to Singaporean firm, Trafigura.

The government says the Finance Ministry has taken steps to liquidate the debt, but Ghana’s High Commissioner to the United Kingdom, Papa Owusu Ankomah, believes the financial constraints of the government are to blame for the default in the payment plan agreed on with the judgement creditors.

Upon the advice of the Attorney General in 2017, the government terminated the deal on grounds that due to its attendant high tariffs, if implemented, it would have cost the state $115,480,000.

It also cited illegality for want of capacity of [GPGC] to enter into a PPA, failure to obtain siting and construction permits, installation of used plant contrary to policy, and failure on the part of GPGC to fulfil some conditions among others.