GPGC Judgement Debt: Kwabena Donkor's Utterances Most 'Unfortunate and Irresponsible' - Boakye Agyarko 'Fires'

Kwabena Donkor on the termination of the GPGC Power Purchase Agreement."I deem the utterances most unfortunate and irresponsible coming from a former Minister who ought to know that it is not within my power or province, or that of any Minister to unilaterally cancel or terminate a contract of this nature," Boakye Agyarko said in a statement.According to him upon assumption of office, the newly elected NPP government decided to take all the necessary actions to contain the cost of power generation and distribution in Ghana.

Hence, it became necessary to review the implementation of the many Power Purchase Agreements (PPAs) because should all of them be implemented as originally scheduled, it would result in the production of excess energy with its attendant cost, which would worsen the financial situation of the power sector.

The review was therefore to help cut back on losses that would be incurred.A former Power Minister under the John Mahama administration, Dr.

Kwabena Donkor has stated that the decision by government to terminate the Ghana Power Generating Company (GPGC) contract, leading to a judgement debt of $140 million “made no sense commercially and legally” at the time.The Pru East MP, wants parliament to probe the former Energy Minister, Boakye Agyarko and other officials of the current government who took the decision, insisting the reasons given for the termination are untenable.Read below his full statementMy attention has been drawn to some very unfortunate and ill-informed statements by Hon.

Kwabena Donkor on the termination of the GPGC Power Purchase Agreement.I deem the utterances most unfortunate and irresponsible coming from a former Minister who ought to know that it is not within my power or province, or that of any Minister to unilaterally cancel or terminate a contract of this nature.Upon assumption of office, the newly elected NPP government decided to take all the necessary actions to contain the cost of power generation and distribution in Ghana.

It became necessary to review the implementation of the many Power Purchase Agreements (PPAs) because should all of them be implemented as originally scheduled, it would result in the production of excess energy with its attendant cost, which would worsen the financial situation of the power sector.

The review was therefore to help cut back on losses that would be incurred.An Inter-Ministerial Committee was set up under the chair of the Energy Commission to review the fiscal and legal implications of Power Purchase Agreement (PPAs) executed by the Electricity Company of Ghana (ECG).