The Africa Centre for Energy Policy (ACEP) has indicated seeing the addendum to the AMERI contract submitted to parliament through a joint memorandum by Hon. John Peter Amewu, the Energy Minister and Hon. Ken Ofori-Atta, Finance Minister. 

The addendum according to ACEP, presents a more favorable liability for government than the original contract terms which proposed saving $51.3 million.

In a statement singed by Mr. Benjamin Boakye, the Executive Director of ACEP, and copied to, he noted that the delayed outcome was as a result of direct engagement with the contractor who had delivered on the expected terms of a binding contract, for which reason ACEP was convinced from the beginning that, good faith was the only ingredient required for a renegotiation. 

He indicated that, the renegotiation arrived at some savings on the variable charges and the capital recovery charges. 

The statement explained that, Clause 1(J) of the addendum provides a complete waiver of the remaining variable charges where in consideration of GoG’s commitment to clear the complete payment backlog under the BOOT Agreement from February 2017 till July 2018).

It also noted that, AMERI agreed to waive its variable charge of about 0.005US$/kwh from September 2018 until the remainder of the term of the BOOT Agreement expiring in January 2021, capped at a ceiling of US$16.6 million per year, generating savings for the Government of Ghana of up to USS41.5 million in total.

The statement also said, on the capital recovery of the $510 million in the original contract, AMERI provided conditional and unconditional rebates. 

The new deal also agrees to extend the payment period to 6 years instead of the original 5 years to decouple fiscal tenure from operational tenure of 5 years of the contract. 
According to the statement, “This reduces the annual recovery payment of $102 million to $76.5 million or monthly payment of $8.5 million to $6.375 million for the remaining two and half years. 

“The difference between the new annual payments for the two and a half years and the original contract is $63.75 million. Out of the $63.75 million, AMERI waives $7 million to government unconditionally. 

“An additional $2.8 million will be waived on condition that GoG respects the payment schedule agreed in the addendum. 
“In addiction, all default charges and interests on the outstanding payments have been waived.

“Government has agreed to a payment schedule for the outstanding $90million it owes to AMERI in a four-payment schedule in November 2018 ($10 Million), January ($30 million), February ($25 million) and March 2019 ($25 million). 

“It is our understanding, however, that the November payment has already been in default.

“ACEP commends Government for bringing closure to the disagreements. We recommend that the payment schedule of debts be duly followed to allow government benefit from the full cost saving of the $2.8million waiver by AMERI. 

We also recommend that similar closures should be brought to all contracts under renegotiation to allow for proper planning of the power sector which is inundated with many challenges.”



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