National DRIP Coordinator engages Obuasi Municipal Assembly staff
The National DRIP Coordinator, Nii Lantey Vanderpuye, has impounded and handed over to the Obuasi police a back- hoe machine belonging to the Obuasi West Municipal assembly which was being used for an unauthorised activity.
The equipment was impounded by the National Coordinator on the Obuasi-Kumasi highway with a broken hydraulic valve. Upon interrogation, the operator of the machine said that he was assigned a task by one of the engineers at the assembly.
The National Coordinator not convinced invited the Obuasi police to effect the arrest of the operator and take possession of the machine for further investigation.
The National Coordinator warned that no one would be allowed to misuse any of the equipment under the management of the Secretariat and any officer who instructs the usage of any of the machines without the permission of the district roads management team and the district coordinator would be surcharged with the cost of servicing and maintenance of the said equipment. He urged the general public to be interested in how these machines are used because they are expensive national assets.
The assemblies have been advised to be patient and wait for the training of their operators before handing over the keys to them. He promised that the training regime would begin soon in all the regional capitals.
Nii Lantey Vanderpuye, National DRIP Coordinator inspects roads in Greater Accra
The Member of Parliament for the Bortianor Ngleshie Amanfrom Constituency, Hon. Felix Akwetey Okley, has assured residents of his constituency that the deplorable Old Barrier to Aplaku stretch of the Atta Mills Highway in the Constituency would be reshaped and maintained starting this weekend.
He was addressing drivers and commuters after an inspection tour of the road with Hon. Nii Lantey Vanderpuye, the National Coordinator for DRIP on Wednesday.
Together with officials of the Ga South District Assembly and J.A. Plant Pool, they walked on the bad road from the Old barrier taxi rank, through Downtown, and to Puma.
The National DRIP Coordinator assured the assembly officials that, he had instructed the engineers at J.A Plant Pool to temporarily release seven qualified machines and truck operators for this emergency.
Hon. Akwetey assured the District Coordinating Director of his willingness to fund the initial cost of the materials needed for the work.
Also, the Coordinating Director assured that she would immediately summon the works and roads engineers for an urgent meeting to address all pertinent issues in order to ensure a successful execution of the assignment.
The Atta Mills Highway connecting communities like Aplaku, Bortianor, Kokrobite, Oshihe, Tuba, Nyanyano, and Fetteh to the main Mallam/ Weija Highway at Old Barrier.
Ga Central Tour
Meanwhile, the National DRIP Coordinator, in response to residents calls in the Ga Central District paid a familiarisation visit to the CP area of the district to inspect the condition of their roads. He lamented the deplorable road network and assured the residents that he would liaise with the new District Chief Executive and the assembly to utilise the DRIP machines to effectively change the situation very soon.
Section of the CP road
“I can’t believe that these roads are in Accra and in the Greater Accra region. This is unacceptable, and we shall reset it soon. ” Hon. Nii Lantey Vanderpuye assured the people.
The family of the late business mogul, Alhaji Asoma Abu Banda, has denounced the 40th day funeral event being organised by unrelated family members at the State House as ‘illegitimate’.
The Abu Banda family has therefore cautioned the general public and lovers of the late Alhaji Asoma Banda to disassociated itself from an unauthorised funeral.
The family, at a press conference held at the Alhaji Banda’s mosque at Airport Residential Area, addressed the media and public in the presence of his siblings and other family members indicated that, the late Alhaji Banda before he passed requested that ‘no state funeral should be organised fore him in his absence’ and wants to honor his request.
“Alhaji Asoma Abu Banda had specifically requested to be buried in the mosque, alongside a mausoleum prepared for both himself and his wife of 51 years, Mrs. Cassandra Asoma Banda, with whom he shared a devout faith”, the Head of Family, Alhaji Mohammed Abu Banda, said.
Alhaji Mohammed, who is also the Chief of Banda in the Ashanti Region, emphasised the family’s collective commitment to preserving the legacy, dignity, and religious wishes of the late Alhaji Asoma Abu Banda.
“My late brother passed away on the 1st of March 2025, and in accordance with his wishes and Islamic tradition, I personally laid him to rest right here in the mosque he built to honour the religion he cherished,” said Alhaji Mohammed.
However, addressing what he described as a deeply concerning development, Alhaji Mohammed revealed that one Alhaji Abdullah Khalifa, also known as Alhaji Abomour, had taken unilateral steps to organise an unauthorised funeral service at the State House.
In a strong and clear statement, he noted: “Alhaji Abdullah Khalifa is not the Head of the Abu Banda Family. The funeral at the State House is not sanctioned by the family or the state. The Abu Banda Family has no knowledge of this event.
“The public is being misled by invitations issued by Alhaji Khalifa. The family completely dissociates itself from this unauthorised gathering.”
He strongly stated that “Alhaji Abdullah Khalifa is not a member of the Abu Banda family.”
Meanwhile, he invited all well-wishers and the public to the official 40-day funeral service, scheduled for Thursday, 10th April 2025 at 10:00 am, at the same mosque in the Airport Residential area. The service will be led by the National Chief Imam, with Qur’anic recitation and prayers in honour of the late Alhaji Asoma Abu Banda.
The Mahama administration has directed the Lands Commission to submit to the presidency documents on all sold State and Public lands within 14 days from January 10,2025.
The four days old government also ordered immediate halt on selling and processing of State and Public Lands.
“The directive is issued in utmost good faith to protect public lands for benefit of citizens and future generations” a statement signed by the Secretary to the President, Calistus Mahama said.
The sprawling informal settlement of Mukuru on the outskirts of Nairobi holds powerful tales of how an innovative gas energy company is providing clean cooking solutions and restoring dignity to households in the Kenyan capital.
Aurelia Aureh, now boasts of smoke-free cooking, following years of using charcoal, which poses a health hazard because of the emission of potent fumes. She usesM-Gas, for low- income households, which employs a pay-as-you-cook model, allowing them to access the commodity in small amounts.
“Before I used to cook outside with charcoal, which was very expensive. I would spend about Ksh50 (about $0.38) on charcoal for any one cooking episode,” she said. Now she spends less than half that amount with less hassle and all the benefits.
Aurelia is elated at the convenience that comes with using M-Gas. “I do not have to go to the gas vendor looking for the gas when it runs out, as M-Gas monitors my usage and replaces my gas before it runs out. I simply continue to pay for my immediate cooking needs from where I am (using M-Pesa mobile money). In addition, it is safe. I don’t have to worry about my children playing with it because it has tight security features.”
M-Gas provides affordable clean cooking gas for low-income households in Kenya. Initiated in 2019, M-Gas uses smart meter technology to enable users to access liquid petroleum gas (LPG) in quantities they can afford for the moment, for even as low as Ksh10 (about $0.077), payable using mobile money. The technologysimplifies LPG access for consumers who cannot afford the upfront cost of gas and LPG cylinders, thus addressing the highcost- barrier of switching to and purchasing LPG.
This caught the attention of the African Development Bank’s Vice President for Private Sector, Infrastructure and Industrialisation, Solomon Quaynor, who was in Nairobi at the end of July 2024 to explore opportunities for collaboration in the country’s clean cooking sector.
He met with Martin Kimani, the CEO of M-Gas. They discussed priority areas of partnership towards advancing Africa’s energy transition. He also met with Circle Gas, the parent company of M-Gas. In particular, Board Chairman Carey Ngini, and Board member Michael Joseph. Circle Gas has strategic partnerships with institutional partners, including Safaricom (connectivity and M-Pesa payment solutions), and Total Energies (LPG cooking cylinders).
Quaynor visited Mukuru, where he interacted with Aurelia, and other residents.
Mercy Karimi, another Mukuru resident, tells how before using M-Gas, her three-year-old daughter often got chest infections and breathing problems because of the dangerous fumes from kerosene, which she used for cooking. “But since I started using M-Gas, my child no longer has that problem, and can stay for a long time before visiting the hospital,” she said.
Clean cooking is one of the Bank’s priority areas. In May this year, the Bank pledged $2 billion over 10 years towards clean cooking solutions in Africa—a move toward saving the lives of 600,000 mainly women and children, lost annually from the effects of secondary smoke from partial combustion of biomass, fuel wood and charcoal.
Despite improved access to electricity in recent years, there is little progress to adopt clean cooking, with around a billion people across Africa still cooking over open fires and basic stoves. Using charcoal, wood, agricultural waste, and animal dung as fuel affects the lives of millions of people – mostly women and children – as they inhale toxic fumes and smoke while cooking.
Quaynor also toured the M-Gas depot in Ruaka, a suburb located north-west of Nairobi. Here, he was taken through the paces of how the smart metered innovation works. He interacted with households and even business owners, to seek their views on the M-Gas innovation.
Stephen Njogu, a resident of Ruaka, has been using M-Gas for two years now.
“This system is cheaper because I can buy gas even with the little money I have, compared to the normal gas for which I have to buy the whole cylinder of gas. Secondly, M-Gas is clean, no smoke while cooking, unlike before when I used kerosene, which would emit dangerous smoke,” he said.
Faith Kamau, who runs a small local eatery in Ruaka is another supporter. She is now, able to serve her customers without the fear of gas running out unexpectedly. “I am able to cook many dishes using little energy. I have been able to save some money, which I have diverted to buying more food stock. Besides, in case of any problem with the cooking system, I alert the M-Gas Customer Experience Centre, which responds very fast with advice on how to deal with the problem. I like M-Gas solution so much that I also have it at home”.
According to Quaynor, such experiences are inspiring the Bank to intensify efforts to increase investments towards affordable clean cooking solutions for millions of Africans who still lack access. “The Bank is working withthe private sector, a key player in the energy transition, to catalyze investments in the sector to address energy povertyin line with Sustainable Development Goal 7 (SDG7) on affordable, reliable, sustainable and modern energy for all,” he emphasised.
The Bank’s pledge of $200million per year represents an important contribution to the $4billion per year needed to allow more African families to have access to clean cooking by 2030.
The 2024 edition of the Awards spotlights infrastructure, sustainability, and gender equality. A total of 59 institutions and individuals have passed first round judging and are in the running for the Awards – the highlight of Africa’s banking calendar.
07 May 2024, London – African Banker magazine has announced today the shortlist of nominees for this year’s edition of its African Banker Awards. Since its inception in 2007, the African Banker Awards has recognised the exceptional individuals and organisations driving Africa’s rapidly transforming financial services sector.
The Award winners will be announced during a spectacular gala dinner ceremony on the 28th May, in Nairobi, Kenya – a part of the official programme of The Annual Meetings of the African Development Bank Group.
The African Banker Awards is organised by IC Events. It is held under the patronage of the African Development Bank. The Awards’ Platinum Sponsor is the African Guarantee Fund, with African Export-Import Bank and Vista Bank as the Gold Sponsors, and the Cocktail Reception being sponsored by African Trade & Investment Development Insurance.
Nominees were selected from a record number of entries from across the entirety of the African continent. For the first time in the Award’s 18 year history, three nominees for the most prestigious ‘Banker of the Year’ are women, reflecting the growing number of female leaders in finance.
Speaking about the Awards, Omar Ben Yedder, Chair of the Awards Committee, also noted the growing role of Development Finance Institutions. “Over the years, we have seen the evolving role of DFIs,” he said. “They are playing an important role in structuring transactions and in catalysing development, often filling the gaps in areas that are under-served or under-represented.
“That said, the finance gap in infrastructure, trade and climate finance mean that the banking sector as a whole will need to be even better capitalised. But looking back at the 18 years of the Awards, it is night and day when you look at the size of our domestic banks and the transactions they are capable of structuring.”
The nominees for the African Banker Awards 2024 are as follows:
Bank of the Year
African Export-Import Bank
Ecobank
KCB Group
Rawbank
Trade and Development Bank Group
Uganda Development Bank
United Bank for Africa
Banker of the Year
Admassu Tadesse – Trade and Development Bank Group
Anel Bosman – Nedbank
Karim Awad – EFG Holding
Miriam Olusanya – Guaranty Trust Bank
Patricia Ojangole – Uganda Development Bank
Serge Ekue – Banque Ouest-Africaine de Développement
Sidi Ould Tah – Arab Bank for Economic Development in Africa
Trade Finance Award
Access Bank Nigeria
Attijariwafa Bank (AWB) Group
Bank of Africa (BOA/BMCE) Group
Diamond Trust Bank Kenya
First Bank Nigeria (FBN)
Deal of the Year – Debt
Absa Bank Ltd – 2 tranches valued at TZS 212bn and USD 73mn respectively – Absa – NMB Bank
African Development Bank – $117 million The Globeleq Menengai Geothermal Power Project in Kenya
Africa Finance Corporation – $1.82bn Project KaMa
African Frontier Capital – $500m Brighter Life Securitization
Hogan Lovells – $16bn Ghana Debt Restructuring
MUFG Bank – €774m Project Strada – UKEF backed loan to support FERA and the Republic of Senegal in its nation-wide road programme
Standard Bank – $775m Foschini Group Syndicated Funding Package
Deal of the Year – Equity
Absa Bank – $500m Airtel Uganda IPO
Banque Ouest Africaine de Développement – $100m BOAD Hybrid Bond
Pangaea Securities – $145m Affirma Capital Limited’s acquisition of Copperbelt Energy Corporation
Rothschild – $1.1bn investment into Mopani Copper Mines plc by International Resources Holding RSC
Standard Bank – $200 million Meridiam’s acquisition of controlling stake in Kipeto
Infrastructure Deal of the Year
African Export-Import Bank – $203m Great Horn Investments Holding “GHIH”
African Export-Import Bank/Standard Chartered – $1.762bn (of which $363m is the commercial tranche) Tanzania Railways, Government of Tanzania
by: Yaw Appiah Lartey, George Anang & Emmanuel Opoku-Bona
In Ghana, the housing deficit is significant. According to the Ghana Statistical Service (GSS), it stood at 2 million units in 2022.
This suggests a need for 200,000 units annually over the next ten years, assuming steady population growth and constant supply at prevailing rates.
Increasing permanent income, graduate education, and a growing expatriate population are some major factors affecting the demand for houses in Ghana.
Expatriates inject cash into the economy, increasing the need for modern housing, especially in prime locations and countryside destinations, potentially, pricing out locals.
Affordable housing model
Ghanaians, prior to recent global and national economic challenges, had been enjoying increased financial stability and rising income levels with a general rise in the middle-income class, leading to aspirations for better living spaces and improved living standards.
Changing family preferences for smaller sizes deepen also the demand for houses. This rise in demand is transforming the landscape of Ghana’s housing market.
While the pricing of homes varies significantly with factors such as location, size, style, and amenities, typical homes in the country are priced between GH¢200,000 (US$ 16,703) and GH¢ 800,000 (US$ 66,811) for a standard two-bedroom home.
The median price of a 2-bedroom house in Greater Accra and Ashanti Region as of January 2024 stood at GH¢ 1,034,482 (US$ 86,394) and GH¢ 230,000 (US$ 19,208) respectively.
Homes in the Greater Accra Region are relatively more expensive than those in the Ashanti Region. The trend is common for other regions as well with even less expensive homes further away from regional capitals.
The pricing of homes generally is influenced by demand, additional costs linked to features such as quality of material used, finishing, extra architectural features and miscellaneous development costs contributing to price escalations and explain the variation in pricing across regions in Ghana.
Mortgage finance is one typical option for home purchases globally. Mortgages allow for flexible expending on home purchases, spreading payment over a period of ten (10) to twenty-five (25) years.
Mortgage interest rates in Ghana range between 20% and 27% on cedi facilities, depending on the lender, the borrower’s source of income, and the loan tenure.
In Ghana, the mortgage to GDP ratio of 1% indicates low levels of patronage compared to South Africa, Namibia and Cabo Verde, which have mortgage to GDP ratios between 3% to 10% of GDP.
While qualification for mortgage facilities remains a major barrier, the perception of the masses on debt also acts as an inhibiting factor for patronage of mortgages.
Majority of home purchase transactions are funded by equity typically through self-development over an extended period or savings in hard currency.
Other home purchase options include the rent-to-own programme: a structure for civil servants in Ghana which allows buyers to make monthly payments towards the purchase of a home while living in it for a set period and offered an option to buy at the balance of the outstanding value.
Affordability is pricing that caters for the masses. As of 2023 in Ghana, there were about nine (9) Affordable Housing Projects (AHP) at various stages of completion including; The Asokore Mampong Affordable Housing Project (Completed) the Borteyman Affordable Housing Project (Completed), the Community 26 Kpone Affordable Housing Project (In-progress), the Saglemi Affordable Housing Project (In-progress), the Amasaman Affordable Housing Project (In-progress), the Shai Hills Affordable Housing Project (In-progress), the Gbetsile Affordable Housing Project (In-progress) and the most recent 8,000 Unit Pokuase Affordable Housing Project.
Other private developments seeking to enter AHP space include the Appolonia Bijou Homes Project and Adom City Phases.
The AHPs projects above listed are priced between GH¢ 159,768.40 (US$ 13,343) for studio units and GH¢ 492,619.23 (US$ 41,141) for 3-bedroom homes.
According to the GSS, over 80% of public sector workers earn less than GH¢3,000 (US$ 251) per month as of February 2023.
Extrapolating this statistic for the average income of Ghanaians, we will for the purpose of this analysis, peg average earnings from all sources at GH¢ 3,000 (US$ 251).
Affordability of housing is best considered on a household basis, using the average household size of 3.6.
According to the United Nations, a household is a small group of persons who share the same living accommodation, pool some or all of their income and wealth, and consume certain types of goods and services collectively, mainly housing and food.
Thus, assuming a minimum household of two (husband and wife) in the working class, the average annual household income using the same base individual income of GH¢3,000 (US$ 251) is estimated at GH¢72,000.00 (US$ 6,013) per annum.
For this analysis, we employ the popular 50/30/20 rule indicating that 50% of household income is spent on essential expenses such as rent, utilities, and groceries, 30% caters for non-essential purchases and wants, and 20% put into a savings account.
Referencing this general rule of thumb, using GH¢72,000 (US$ 6,013) as the average annual household income, it may be implied that the average household can save at most GH¢ 1,200 (US$ 100) monthly and GH¢14,400 (1,203) annually towards acquiring a home, assuming all savings are channeled toward home purchase.
As an analytical safety net of prudence favoring affordability, we assume a further 30% scale-up of annual savings/ disposable incomes per annum for home purchase to GH¢ 18,720 (US$ 1,563).
Thus, keeping inflation and other price and wage adjustments constant, the total save-up period to purchase a standard 2-bedroom valued at GHS 500,000 (US$ 41,757) is estimated at approximately 27 years through the equity purchase route.
Generally, most lenders prefer a borrower’s mortgage payment be less than or equal to 40% of their gross income.
Further to the previous example of a standard 2-bedroom valued at GH¢500,000 (US$ 41,757), a cedi mortgage facility with a tenure of 20 years assuming an average interest rate of 21.5% implies a monthly repayment of GH¢9,086 (US$ 759) per month.
Compared to the maximum debt burden of GH¢3,120 (US$ 261), the average household falls short of repayment obligations by 65.7%, rendering them unqualified for mortgage facilities, or overstretched by allocating substantial portions of income towards debt obligations.
For a house to qualify as affordable for the category of citizens, with an annual income of GH¢72,000 (US$ 6,013), given a mortgage tenure of 20 years for cedi-denominated mortgages at an average interest rate of 21.5% the price of the house should fall within the bracket of GH¢ 120,180 (US$ 10,037) and GH¢171,685 (US$ 14,338). This would be the definition of affordable housing in Ghana.
In light of the concerns raised, questioning the true affordability of affordable housing is important. While commercial institutions in Ghana may not find long-term project investments appealing, the government could consider perpetual mortgages. This would enable extended repayment periods which, coupled with favorable interest rates, reduce financial burdens, making home purchases more feasible. Another option could be exploring affordable renting, providing stable rental prices to investors indefinitely.
The Bank of Ghana has indicated that, the Gold for Oil (Gold4Oil) programme may be reintroduced, if the need be, to help strengthen the local currency.
This comes at a time when the Ghana Cedi is depreciating sharply against the U.S Dollar, Euro, and Pounds Sterling on the Forex Market. Beginning of January to April, as at last week, the cedi has experienced a continuous blip depreciation, resulting in a year-to-date depreciation of approximately 9.37%.
Data from the Bank of Ghana indicates a consistent depreciation trend, with rates of 1.69%, 0.98%, and 1.77% for January, February, and March 2024, respectively, despite efforts such as fresh dollar inflows and forex auctions to Bulk Oil Distribution Companies (BDCs). Although, there is huge improvement in the depreciation trend on year-on-year basis compared to the 22.73% depreciation recorded as of April 2023.
However, the Central bank Governor, Dr Ernest Addison appearing at the Public Accounts Committee (PAC), last week, reiterated the pivotal role the Gold4OIL policy played amid the economic turmoil in 2022 and 2023 in managing the exchange rate and pump prices of fuel. Thereby, proposing that, the government could continue relying on the policy if oil prices surge at the pumps, opposing any potential discontinuation.
“This is an intervention which was very critical in the heat of the crisis. Yes, the foreign exchange market is functioning better than it was in 2022. Oil prices have come down much better than they were in 2022″.
“The situation is much better now than it was in 2022 when the Gold4Oil policy was introduced,” he acknowledged.
“However, we think that it’s still an important programme for the government to have that option and to be able to empower commercial banks to undertake their activities”.
“Should market sentiments change, which do every day; we don’t know what will happen tomorrow, and we will wake up and if we find ourselves in a situation where the prices are driving the pumps to where they were again, the government has the option to fall on. It’s a very innovative instrument”.
He also projected “a big jump in gold holdings for Ghana”.
Meanwhile, in real terms, commercial banks are reporting an all-time high exchange rate of GHS 13.455 to a dollar, compared to GHS 11.55 during the same period last year.
While some analysts project a potential reversal of the cedi’s fall in the first half of the year, others fear its impact on inflation.
To stabilise the cedi, the Bank of Ghana plans to auction $120 million to BDCs in the second quarter of 2024, although persistent demand for dollars by businesses may pose challenges.
Concerns persist regarding currency volatility, despite maintaining the policy rate at 29% and lending rates averaging over 32%. However, Governor of the Bank of Ghana, Dr. Ernest Addison, expressed optimism at the last Monetary Policy Committee meeting, citing strong reserves from improved remittance inflows as a buffer for the local currency in the upcoming months.
Ghana’s current Gross Domestic Product in value terms stood at GH¢841.63 billion in 2023, according to Ghana Statistical Services data.
This shows a significant jump in the economic activities when compared to the GH¢614.33 billion recorded in 2022.
Although, the 2024 value include net indirect taxes estimated at GH¢58.74 billion.
The services sector emerged as the largest contributor, accounting for GH¢357.34 billion or 45.6% of GDP, followed by industry with GH¢247.941 billion (31.7% of GDP), and agriculture at GH¢177.606 billion (22.7% of GDP).
Sub-sectors by share of GDP included Crops (19.4%), Trade and Repair of Vehicles, Household Goods (18.3%), Mining and Quarrying (12.9%), Manufacturing (12.1%), and Transport and Storage (6.0%).
The last quarter of 2023 saw the highest real GDP growth rate at 3.8%, with the industry sector shifting from contraction to expansion by 1.6%.
Gross National Income per capita in local currency doubled since 2018, reaching GH25,349.
However, from a US dollar perspective, income per head has remained relatively steady, ranging from $2,126 to $2,453 in the last six years.
The Ghanaian economy expanded by 2.9% in 2023, surpassing the Finance Ministry’s revised forecast of 1.5% but falling slightly short of the 3.1% growth recorded in 2022.
However, this growth rate represents a slight deceleration from the 3.1% recorded in 2022.
The GSS reported further indicated that the industry sector contracted by -1.2% in 2023, compared to a 0.6% GDP growth in 2022, despite remaining the largest segment of the economy.
The Electricity and Construction subsectors experienced significant contractions of 10.9% and 9.9% respectively, contributing to the overall decline.
Only the Mining and Quarrying subsector saw growth, at a rate of 2.5%.
Government Statistician, Professor Samuel Kobina Annim, noted a higher growth rate of 3.8% in the last quarter of 2023, driven by the oil and gas subsector.
This marks the first time in over a year that Ghana has seen an increase in oil GDP growth.
Over the past 11 years, four subsectors (Crops; Trade, Repair of Vehicles and Household Goods; Mining and Quarrying; and Manufacturing) have consistently contributed over 50.0% to Ghana’s GDP. Recent years have seen this share increase to over 60.0%, indicating a shifting economic landscape.
Information gathered indicates that, works on the Ameri power plant relocation to Ashanti region is almost completed with the gas pipelines ready.
The installation of six units of the plant is also near completion.
Although, the technical aspect of the project is almost done, the administrative aspects are yet to be concluded. The agreement to govern the interconnection and use of the pipeline is yet to be finalized.
“Volta River Authority (VRA) and Genser Energy Ghana (GEGL) is negotiating an interconnection agreement to govern”, sources close to the project told this news medium.
“Also, GNPC and VRA are yet to finalise the amendment to the GSA which allows for gas delivery to Kumasi.”
“With the information I have, the Genser constructed pipeline is ready and even packed with gas. However that of the power plant is still pending. 6 units of Ameri have been transported.
“Installation of the units started in August of last year”, the source further noted.
The gas pipelines laid from Dawusaso to Kumasi is 105km.
This project was initially met with hostility from some stakeholders and players in the energy sector. The Minority in Parliament raised concerns about the estimated cost of the project.
According to the Minority, they noticed the anomaly when the Committee on Mines and Energy met with a number of Agencies in the Mines and Energy sector, as part of Parliament’s supervisory role.
A Member on the Committee of Mines and Energy, Edward Bawa disclosed in a statement that when the Committee pushed further for details on the total cost for the relocation of the Plant, “answers were not forthcoming.”
“One of the questions I put to the Volta River Authority was how much the relocation of the Ameri Plant from Tarkoradi to Kumasi was going to cost the Tax payer and which company was awarded the contract to execute this. You will recall that Government took the decision to relocate the Ameri Plant to Kumasi as part of efforts to stabilize the power in Kumasi and its environs,”.
“To my outmost shock, the committee was told it was going to cost 35 million United States dollars. This is about 270 million Ghana Cedis,” Mr. Bawa disclosed.
He continued: “The company contracted to carry out the relocation of the plant is MYTILINEOUS INTERNATIONAL TRADING COMPANY, the same company that was involved in the notations and amendment of the Ameri contract that almost swindled Ghanaians but for the vigilance of the Minority. You will also recall that this was what cost Minister Boakye Agarko his Job as Energy Minister.”
“As a Minority we demand the breakdown of this cost particularly at a time when the country is having difficulties paying salaries and servicing our debt.
“The Energy sector is under serious challenges and therefore such opaque transactions must be halted in the supreme interest of every Ghanaian,” the MP for Bongo stated.
