'Take or Pay'/'Take and Pay' Agreement: NAPO Replies Jinapor, Minority

The Minority in Parliament has criticized a claim by Vice President Dr Mahamudu Bawumia that the government has paid GH₵17 billion for excess capacity payment arising out of the “take or pay” agreement.According to the Minority, the claim by the Vice President is untrue and therefore challenged him to provide evidence to substantiate the assertion.Mr John Abdulai Jinapor, Ranking Member on the Mines and Energy Committee, addressing a press conference in Parliament House in Accra, said, “I am ready to stand down as the Ranking Member of the Mines and Energy Committee.

I say so with conviction knowing what the Vice President is saying is untrue”.Energy Minister, Matthew Opoku Prempeh, popularly known as Napo in reaction, has called on the citizens to ask John Jinapor "to explain the difference between 'take or pay' and 'take and pay'.

If he understands the meaning of the two and knows that the contract they signed was take or pay, he will know that there is an excess capacity or ENI capacity charge".Clarifying the difference, he said, "with the take or pay, it means when I brought the plant and it was 400 megawatts, whether I switch it on or not, I will pay for the 400 megawatts everyday.

With the take and pay, if it's 400 megawatts and I generated 100, I will pay for only the 100 megawatts; not the 300.

So, if he doesn't understand the basic difference between take or pay and take and pay, he can ask that question".He stated categorically that, "it is as a result of the bad contracts that they signed that they didn't understand what they were doing"."I want Ghanaians to know that that question they asked means they knew nothing when they were in government.