Don’t blame Mahama for current energy sector debt

John Jinapor, the former Deputy Minister of Power, has rejected allegations suggesting that the previous Mahama administration entered into power purchase agreements that caused the country to incur a financial burden exceeding $320 million.

During a press briefing on Wednesday, June 14, Samuel Atta Kyea, the Chairman of the Mines and Energy Committee of Parliament, accused the National Democratic Congress (NDC) of signing 43 take-or-pay power purchase agreements. These agreements supposedly resulted in the current government’s obligation to pay more than $320 million in 2018 for unused power charges.

Speaking to reporters, John Jinapor refuted these allegations and attributed a portion of the losses incurred in the energy sector to the New Patriotic Party (NPP).

“ECG losses alone have increased from 23 percent to 31 percent so when the Minister of Finance pays for those losses, it is not excess capacity. It is power delivered. There is a power reserve margin of 20 percent and it is statutory and this government came and decided that it shouldn’t be part of the tariff structure and it is a political decision.”

The Yapei-Kusawgu legislator blamed the massive leakages, forex losses, exchange differentials and other factors other than what Mr. Atta Kyea is alleging for the ballooning energy debt.

“The problem is a result of forex losses, exchange rate differentials, and the unnecessary political interference which is leading to this payment and it cannot be attributed to former president Mahama. Immediately these PPAs expire, they quickly renew them and not from the five years that we did but for fifteen years. We will not allow these double standards to go because the facts speak for themselves.”

On claims by Mr. Atta Akyea that the Mahama government entered 43 take-or-pay power purchase agreements, resulting in the current government being obliged to pay over $320 million in 2018 for unused power charges, Mr Jinapor said the allegation is untrue.

“Some of the agreements he has said were not signed by Mahama, so he has to give further information on the 43. This is a simple analogy. You said the man signed 43 agreements, provide the 43,” he added.