Minister of Energy, Mathew Opoku Prempeh, has discounted claims by the Minority in Parliament that the government has signed a US$35 million contract for relocation of the Ameri Power Plant from Aboadze in the Western Region to Kumasi.
According to him, no such contract has been signed so therefore the total cost of the relocation of the Ameri Plant is not yet decided.
He, however, assured if eventually government signs a contract for the relocation and is international, it would definitely be sent to Parliament for ratification.
The Minister disclosed this during an interview in Parliament on Friday after he responded to an urgent question that stood in the name of MP for Pru East Dr. Kwabena Donkor the total cost of the relocation of the Ameri Plant to Kumasi.
The relocation of the Plant, he said, has become very important because, for over ten years, the Ghana Grid Company (GRIDCO) and Volta River Authority (VRA) grid stability studies have shown the weakest link in the country’s entire national transmission system is in the Ashanti Region.
The region, he said, suffers the worst electricity power outages and suffers more power interruptions than anywhere else in the country.
He stated the VRA and GRIDCO have in the past suggested the country starts locating generation plants in Kumasi and further north in the future because power problems are centred in these regions.
“So when the Ameri Power plant became available, a decision was taken to start a generation company in Kumasi.”
“And since that decision was taken by the government, it is not only Ameri that is being relocated there but the GRIDCO is also negotiating to have two other plants that already have operations in Ghana located in Kumasi. The VRA is also relocating one of its own plants,” he said.
Mr. Mathew Opoku Prempeh noted that the VRA, however, does not have the funds to relocate the Ameri and so the government stepped in to find that money but stressed all negotiations relating to the relocation are being led by the VRA.
The government, he said, made the decision that the best company to relocate the AMERI is the one already operating and managing the plant if they can find the funds.
He disclosed that as part of the US$35 million relocation, the company will operate the plant for three years and within that period they will train VRA to take over the plant when it is transferred to them.
“So even though the government has decided to give the plant to VRA, there is nobody in VRA presently who understands the plant and, who was part of the management of the plant for the past five years.”
“But this whole negotiation of relocating the Ameri Plant has been led by the VRA at the level of the Deputy Chief Executive in charge of engineering, together with their lawyers, representatives from the Ministry of Finance, representatives from the Energy Commission, representatives from the Ministry of Energy and the PURC to ensure the plant would move to contribute to power stability and reliable power in Ashanti Region,” he stated.