John Jinapor, the former Deputy Minister of Power, has rejected allegations that the previous Mahama administration signed power purchase agreements that cost the country over $320 million.
Samuel Atta Kyea, the Chairman of the Mines and Energy Committee of Parliament, accused the NDC of signing 43 take-or-pay power purchase agreements, resulting in the current government having to pay over $320 million in 2018 for unused power charges.
In an interview on Eyewitness News on Citi FM, John Jinapor refuted these claims and pointed out that the NPP government is partly responsible for the losses incurred in the energy sector. He mentioned that the losses of the Electricity Company of Ghana (ECG) alone have increased from 23 percent to 31 percent. When the Minister of Finance pays for these losses, it is not due to excess capacity but rather power that has been delivered. He also highlighted that there is a statutory power reserve margin of 20 percent, which the current government decided should not be included in the tariff structure for political reasons.
According to John Jinapor, the ballooning energy debt is not solely attributed to the actions of the Mahama administration. He stated that the problem is a result of forex losses, exchange rate differentials, unnecessary political interference, and other factors, which contribute to the payment obligations. He emphasized that these issues cannot be solely blamed on former President Mahama and that the current government has been renewing power purchase agreements immediately after they expire, often for longer durations of fifteen years compared to the five years during their tenure.
Regarding the specific claim made by Samuel Atta Kyea about the Mahama government entering into 43 take-or-pay power purchase agreements, John Jinapor called for further information and evidence to support the allegation. He challenged Atta Kyea to provide details about the 43 agreements claimed to have been signed, emphasizing the need for concrete evidence to substantiate the accusation.
In summary, John Jinapor, the former Deputy Minister of Power, has dismissed the allegations made against the previous Mahama administration regarding power purchase agreements. He argued that the NPP government shares responsibility for the energy sector losses and highlighted other factors contributing to the energy debt. Jinapor called for evidence to support the claim of 43 signed agreements and emphasized the need for transparency and accountability in the discussion.
Source – citinewsroom.com
