The government is seeking approval from Parliament to review the build, own, operate and transfer (BOOT) agreement it entered with the Africa and Middle East Resources Investment Group (AMERI Energy) on February 10, 2015.
A memorandum submitted to Parliament indicated that the new transaction had a waiver of $52.7 million due AMERI Energy that the government of Ghana would have had to pay.
Besides, it said, there would be a reduction in the standby letter of credit (SLC) from $51 million to $37.5 million and cost savings of $405.067 million over a period, while electricity tariffs on end users would be reduced.
A Deputy Minister of Energy, Mr William Owuraku Aidoo, laid the memorandum last Wednesday, requesting Parliament to approve the novation and amendment agreement dated July 20, 2018.
It said President Nana Addo Dankwa Akufo-Addo had given Executive approval for the novation and amendment agreement due to the gains to be made in favour of the country.
As part of measures to address power supply challenges, the government entered into a BOOT agreement with AMERI Energy on February 10, 2015 for the provision of a fast-track turn-key power generation solution through the construction of a power plant.
Under the agreement, AMERI Energy installed 10 gas turbines and all related equipment and provided certain services related to the operation and maintenance of the plant for a period of five years.
The first BOOT agreement was ratified by Parliament on March 20, 2015.