ACEP praises AMERI Deal money value analysis

The Africa Centre for Energy Policy (ACEP) recently praised the decision of His Excellency the President to analyze the money value within the AMERI Deal by making financial models.

The goal of the models and analysis is to create a guide that guarantees the money value for future negotiations in gaining access to power.

The ACEP encourages the president to make sure that this model and analysis are accurate and efficient in order to disclose issues related to the AMERI Deal. To do this, the analysis must include the Power Purchase Agreement (PPA), which involves both KARPOWER as well as ECG.

The Power Purchase Agreement is essential since ACEP has data showing the deal between KARPOWER and ECG has significant flaws. It appears that the deal is established on an arrangement that is even more detrimental than the Build Own Operate and Transfer (BOOT) arrangement, which brought about the AMERI Deal.

A normal PPA should last for more than 20 years, allowing the cost and burden to decline for consumers. Unfortunately, KARPOWER practices 10 year deals.

ACEP requests that officials and researchers consider whether the government should have ongoing policies concerning IPPs, BOT or BOOT is efficient when it comes to costs, the PURC regulator is adequate for consumers, IPPs should be sourced via competitive building and power procurements should be signed by the Ministry of Power, the VRA or other officials.

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Africa Centre for Energy Policy (ACEP)

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