Minister of State at the Finance Ministry, Abena Osei Asare, has said that the government of President Akufo-Addo has been able to save a significant amount of money through the renegotiation of some of the agreements with the Independent Power Producers (IPPs).

She described those agreements signed by the erstwhile Mahama administration as ‘expensive’ deals that needed to be renegotiated.

It is recalled that delivering the State of the Nation Address to Parliament on Tuesday, Febraury 27 President Nana Addo Dankwa Akufo- Addo announced that the government’s negotiating team had reached commercial agreements on headline terms for the restructuring of power purchase agreements and arrears.

He mentioned the affected IPPs are AKSA, Amandi, Cenpower, CENIT and Early Power, the President said, adding that the negotiating team was also finalising remaining definitive documentation of the terms.

President Akufo-Addo said it was discovered during the negotiations that the reported debt of US$1.6 billion owed the IPPs was US$1.2 billion, translating into savings of US$400 million.

“In the meantime, ECG has been able to secure a fixed monthly energy purchase price with all the IPPs.

“This has led to a monthly payment of US$43 million, instead of US$77m, that is monthly savings of US$34 m 44 reduction in monthly payments, a far better outcome than the ‘Take-or-Pay’ system we inherited,” the President said.

Speaking in an interview with TV3’s Beatrice Adu on Monday, March 11, Madam Osei Asare said “When the president came to parliament with the SONA, he mentioned that we have been able to renegotiate some of these expensive IPPs that the previous government entered into. We have done some renegotiations and that has resulted in 44 percent.

“If you look at the quantum of the 44 percent I don’t think you will be asking whether it is satisfactory enough, we have saved enough money.”

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