The Public Utilities Regulatory Commission (PURC) has given the Electricity Company of Ghana (ECG) seven days to provide a detailed incident report on power outages for the period January 1, 2024 to date.
According to the Commission, the ECG is also to state the volume of load curtailed for each power outage incident, energy not served, and number of customers affected.
This directive was contained in a report sighted by JoyNews.
Meanwhile, PURC says failure on the part of ECG to respond to these key issues will force the Commission to impose sanctions on the power distribution company.
The Ranking Member of the Energy Committee of Parliament, John Jinapor, has disclosed that the Electricity Company of Ghana (ECG) is grappling with a colossal debt of $1.5 billion.
According to Mr. Jinapor, this massive debt is primarily due to ECG’s failure to meet its financial obligations to Independent Power Producers (IPPs) and its inability to settle bills for purchased electricity in full.
Additionally, Mr. Jinapor criticised ECG for what he sees as wasteful spending on items like cables, malfunctioning meters, and what he considers unnecessary contracts.
Pointing to a report from the Public Utilities Regulatory Commission (PURC) that he has reviewed, Mr. Jinapor highlighted instances where ECG allegedly mismanaged funds, diverting significant sums away from debt repayment to other expenditures.
John Jinapor
In a media interview, Mr. Jinapor urged ECG to provide transparent explanations for the recent power outages experienced by Ghanaians.
“ECG owes $1.5 billion, when they take the money from Ghanaians, they fail to pay the IPPs and use the funds to do whatever they want with it and they fail to pay the full price of the power they purchase and PURC has brought a report that when ECG comes in possession of a substantial amount of money they refuse to pay the debt they owe, they spend the money recklessly, and this is an official report from the PURC.
“Some of the things they buy, they don’t even need it, and now they want to be buying fuel, which is not even their core duty, all these are a reason the finances aren’t adding up,” he said.
The Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has attributed the recent power outages in parts of Accra and other regions to maintenance issues rather than fuel-related problems.
Numerous communities have faced unpredictable power supply for several weeks without prior notice from ECG.
Addressing the matter on Starr FM on Thursday, February 29, 2024, Mr Mahama assured that ECG is diligently working to resolve the challenges and restore power to affected areas.
According to him, the ongoing issues are primarily associated with major maintenance concerns rather than fuel shortages.
“We are having major maintenance issues, the issue we are having now has nothing to do with fuel. You are relying on a power plant that is to give you about 360 megawatts then around 4 pm the gas emergency safety valve has a problem. What do you do? It is a machine.
Samuel Dubik Mahama
“The machine failed us and we kept on saying that it’s a machine issue that we were trying to fix,” Mr. Mahama stated.
Acknowledging the impact of the machinery failure on the power supply, he expressed regret over the lack of timely communication with the public.
He continued: “I must apologize to Ghanaians, when it started we should actually have the confidence to have a chat with everybody and put out a statement.”Source:Citinewsroom
The Minority in Parliament has called on the Electricity Company of Ghana to immediately publish a timetable for the ongoing power cuts popularly known as ‘Dumsor’ to enable people to plan their lives.
Addressing Journalists in Parliament, the Member of Parliament for Yapei Kusawgu, John Jinapor said the continuous and deliberate denial by government officials to the effect that there was no load shedding could no longer suffice.
“We are reliably informed that dumsor will continue today at 12:00 and it’s only fair that Ghanaians are made aware,” Mr Jinapor said.
John Jinapor
The Minority spokesperson for Energy said the government is unable to purchase enough fuel to power some of the thermal plants due to financial constraints leading to generation challenges.
“The best this government led by Nana Addo Dankwa Akufo-Addo and his vice Dr Mahamudu Bawumia can do is to publish the schedule of the ongoing dumsor, so people can plan their lives,” he said.
Meanwhile, the electricity supply to Parliament and Job 600, the office complex for Members of Parliament, was on Thursday disconnected due to a GHc23 million debt.
The National Taskforce executed the disconnection following unsuccessful attempts to collect the outstanding arrears.
The disconnection is part of the ongoing “Operation Zero Balance” initiative by the Electricity Company of Ghana (ECG) task force.
The primary goal of this initiative is to recover outstanding debts from various customers, and in this case, Parliament House and Job 600 were targeted due to their substantial debt.
Parliament experienced a power outage on Thursday, February 29, 2024 during the day’s proceedings.
The legislators were debating President Akufo-Addo’s recent State of the Nation Address (SONA).
Outgoing Deputy Minister for Finance, Abena Osei-Asare was on the floor defending the President’s address when power went off.
It triggered chants of “Dumsor, dumsor!” from the Minority side of the house.
However, the power was restored after a few minutes.
The House was disconnected due to a GHc23 million debt owed to the Electricity Company of Ghana (ECG).
The company’s taskforce executed the disconnection after the House failed to settle the arrears.
The office complex for Members of Parliament, Job 600 was also affected.
This development comes as many Ghanaians are already complaining of erratic power supply.
Early on Thursday morning, the Minority described the recent power outages as a sign of a looming crisis in the country’s power sector.
According to Minority Spokesperson on Mines and Energy, John Jinapor, the power outages are due to the government’s inability to purchase fuel for the country’s thermal plants.
Speaking in Parliament, he highlighted the persistent and consistent load-shedding by the country’s power generation companies.
“Indeed, the load-shedding is getting worse by the day. The very day His Excellency the President was delivering the State of the Nation address and boasting, up that very period, the utility companies were shedding the load,” he said on Thursday, February 29, 2024.
Mr. Jinapor revealed that on February 28, there was a massive power deficit of 530 megawatts, which resulted in power cuts to neighbouring countries such as Cote d’Ivoire, Burkina Faso, and Togo.
“You will attest that there was some massive darkness yesterday. Today at 12 pm, load-shedding will commence again.”
He explained that several of the country’s thermal power plants are not functioning properly, resulting in a significant reduction in power generation.
According to him, the government has been unable to purchase enough fuel to run the thermal plants due to financial constraints.
He urged the government to be more transparent and open about the situation and to provide people with the information they need to plan their lives.
The Coalition Against Galamsey has raised concerns about President Akufo-Addo’s silence on some critical national issues, including illegal mining or galamsey.
According to the Coalition, considering that the president came into office on the back of a huge anti-galamsey advocacy, it is quite surprising in his last speech, he did not update the nation on the progress made so far.
Speaking on behalf of the coalition on Joy FM’s Midday News on February 28, Rev Dr Opuni Frimpong explained that although the president did not comment on the issue while delivering the State of the Nation Address on Tuesday, they expect him to touch on the issue at least before he leaves office.
He emphasised that the Coalition would give President Akufo-Addo the benefit of the doubt to respond to various sentiments expressed by Ghanaians.
Ghana President elect Nana Akufo-Addo during his inauguration ceremony in Accra, Ghana, Saturday Jan. 7, 2017. Ghana’s chief justice swore in the nation’s newly elected President Nana Akufo-Addo amid a sea of people dressed in the red, blue and white colors of his party. Akufo-Addo, 72, won the Dec. 7 election on his third run for the office, defeating incumbent John Dramani Mahama. (AP Photo)
“Now at least with the public sentiment, I pray and hope whoever is listening to JoyFM at this moment will draw the president and presidency’s attention that Ghanaians still want to hear you. We heard you yesterday but beyond all the nice issues you raised, there are ears that are waiting to hear you on galamsey as you are about to go through your last few years,” he said.
Additionally, he said that the President should be able to clarify why there appears to be no significant progress in the galamsey fight and possibly suggest measures that could be adopted to put the country on the edge in the fight.
“At least why have we not been able to change the colors of our waters? Why can’t the people around Birem including Akyem people drink Birem at this moment?
“The President can tell us something and project into the future what we need to do differently,” he added.
In July 2017, the President, Nana Akufo-Addo put his presidency on the line with a commitment to end galamsey in Ghana.
Rallying Ghana’s traditional leaders together, he said if there is one right thing to be done, that thing is for all to fight galamsey, reclaim the lands and leave for posterity a “green country” and a “clean space.”
Tension is currently mounting in the Ahafo Ano North Municipality, especially at Manfo, Subrisu and Mfante, over the alleged harassment by the security guards of the Forestry Commission, among other state security agencies, on miners at community mining sites.
r. Akowuah Samuel , spokesperson addressing the media
According to them, as a result of the harassment and intimidation by state security agencies, two of their colleagues were recently allegedly killed by forest guards, whilst two of their members are still being detained by the police.
The irate youth in the Manfo, Subrisu and Mfante communities, all in the Ahafo Ano North Municipality of the Ashanti Region, on Monday,15th January 2024, held a press conference to register their displeasure at the continued silence of the government over the incident.
They have, therefore, issued a 48-hour ultimatum to the ruling New Patriotic Party (NPP) government to immediately come out clearly to let them know their fate with regard to community mining.
They have urged the Municipal Chief Executive (MCE) for the area and the Minister of Lands and Natural Resources to call state security agencies to order to stop harassing them at the community mining sites, else they should prepare for their anger.
Some scenes from the site
According to them, the MCE, Eric Nana Agyemang Prempeh, the Director-General of the National Disaster Management Organisation (NADMO), who also is one of the leading contenders in the NPP parliamentary primaries in the area, among other top officials in the area, should intervene to ensure peace.
The spokesperson for over 2,000 irate miners,
Mr. Akowuah Samuel, who doubles as NPP polling station chairman at Manfo and chairman for the mining site, revealed that the community mining was officially commissioned by Mr. Mireku Duker, the Deputy Minister of Lands and Natural Resources in charge of Mining, in the presence of Madam Matina Nyantakyi, the MCE for the area, chiefs and the people in the area to serve as employment for the youth on Tuesday,15th December 2021.
According to him, since then they have been working at the site approved by the Ministry of Lands and Natural Resources without flouting any rule or regulation guiding mining.
Unfortunately, state security personnel, including the police, military and forestry guards, continue to harass their members at the site.
Mr. Akowuah said “few days ago, two of our members were shot dead by the forestry guards, and as if that was not enough, recently five of our members, including an NPP polling station chairman at Subrisu, were also arrested, and they are still in the custody of the security personnel.
We don’t even know their whereabouts.”
“The military personnel continue to harass us at the community mining site without any tangible reason. We were made to believe that this area is a community mining site approved by government to give us jobs. And we know that we are working in a legitimate community mining site as the only source of employment for the youth in the area but, unfortunately, we cannot rest in the hands of the state security agencies over constant harassment,” he added.
He continued, “We are signaling the government and the stakeholders to urgently stop whoever is behind the unlawful attacks on us, else we may be forced to act in the same manner which has the potential to cause bloodshed, a situation we want to avoid.
“If the government fails to heed our call, we will stage a non-stop demonstration against all government officials and state agencies until they hear our concerns and address them amicably.”
On his part, Mr. Amoateng Kwabena, one of the speakers at the press conference, also expressed worry over the stress and psychological trauma especially the women had been going through as a result of intimidation and harassment by the military and other security agencies.
According to him, the youth, especially females in the area, would not get it easy if they were stopped from going to the community mining site.
The leadership of a group called Techimantia Youth for Development (TYD),has kicked against plans for the commencement of Community Mining in the area.
Their warning follows, a hint on ongoing consultations, seeking public support for the commencement of the mining activity.They, have therefore,registered their displeasure, stating clearly they do not any form or kind of mining in the area.
File photo
A press release copied to this portal, drafted and signed by the General Secretary, Mr. Danso Darko, suggests that the group’s stands against Community mining is premised on the negative impact it imposes on the environment.
Below is a copy of the press statement:
INDIVIDUALS/GROUPS TARGETS TECHIMANTIA AND IT’S ENVIRONS
FOR ILLEGAL MINING (GALAMSAY).
The attention of the Patrons, Executives and the entire Members of Techimantia Youth
for Development have been drawn to an ongoing consultation by an individual/groups
wanting public support for the so called Community Mining to commence in
Techimantia.
We would like to officially register our displeasure on such development by stating
clearly that the people of Techimantia do not want any form or kind of mining in our
farming Community-Techimantia.
TYD have consulted all the Assembly Members, the Traditional Council, the Christian
Council/GPCC, the Zongo Community and other relevant stakeholders on the subject,
unfortunately their response is NO TO ANY FORM OF MINING.
TYD have assessed the positive and negative effects of mining as compared to the
enormous and continuant benefits of Agriculture and have therefore concluded that, we
cannot stand the test of the Mining menace: Destruction of Agricultural land,
Prostitution, Increased in Social vices among others.
Finally, we’re by this statement serving a word of caution to EVERYONE who wants
to undertake, plan or decide any sort of mining activities in and around Techimantia to
STOP and advise themselves accordingly.
Thank you!
Drafted and Signed by:
Danso Darko (MR.)Gen.Secretary
Contacts of Representatives of Officials involved.
Comrade Kwao Boakye Vincent (P.R.O- TYD)-0542859881
Mr. Danso Darko (Gen. Secretary-TYD)- 0544497447
Hon. Elder Isaac(Assembly Member, New Town-TT)-0592966478
Hon. Asamoah (Assembly Member-TT)-0242089454
Mr. Aforo(CEO of Somera Farms and Best Farmer)-0247076110
Mr. Sarfo Katanka (Geologist and Expert in Mining)- 0204338513
PRESS STATEMENT
For Immediate Release
13th December, 2023
NDC’S POSITION ON THE GHANA-BARARI DV LITHIUM DEAL
The National Democratic Congress (NDC) has keenly followed public discussions on the controversial Mining Lease Agreement executed between the Government of Ghana and Barari DV Ghana Limited, for the exploitation of Lithium and other associated minerals in the Ewoyaa community of the Mfantseman Municipality of Ghana.
After a meticulous scrutiny of the terms of the Mining Lease Agreement, the NDC has come to the conclusion that the Ghana-Barari Lithium agreement is not in the best interest of Ghana.
It is an indisputable fact, that mining hasn’t benefited us as a nation over the years. Hence, there is the need for an urgent review of the country’s existing mining laws and policies, particularly in relation to green minerals.
This is why the flag-bearer of the NDC, H.E John Dramani Mahama has promised to review the laws that govern the extractive industry, in order for the country to maximize her share and local participation in the exploitation of our natural resources.
The NDC holds the view, that the green minerals of the country, should not be exploited based on the existing mining laws and policies, which are predominantly tailored for gold mining and have not benefited the nation over the years.
We are of the firm opinion, that it is about time the existing colonial model of mining lease concession agreements, was reviewed. New models for the exploitation of our mineral resources such as Joint Ventures and Service Agreements, that provide for equitable benefit sharing, enhanced local participation and value addition, should be considered as part of the review of the laws and policies governing our extractive sector.
Our beloved country urgently needs a reviewed mining regime, that provides for the sustainable funding and strengthening of the Ghana Geological Survey Authority, to engage in reconnaissance and prospecting, particularly in relation to green minerals. We believe that this, if supported by the Minerals Income and Investment Fund (MIIF) under the right policy framework, will enhance the bargaining power of the state in the exploitation of our mineral resources.
It is for these reasons, that the Akufo-Addo/Bawumia/NPP government should have extensively engaged all affected local communities, as well as key stakeholders including CSOs in the extractive sector, before executing the Barari-Lithium agreement. Sadly, there has been very little engagement by government with the affected local communities and key stakeholders in the processes leading to the execution of the controversial lithium deal. The NDC believes that, all stakeholders in the extractive sector must have a say in the kind of law and model, under which our lithium and other green minerals should be exploited for the maximum benefit of the State.
Aside the fundamental issues enumerated above, there are certain germane issues about the terms of the Ghana-Barari DV lease agreement that are worth highlighting:
I) First and foremost, the requirement in the mining lease agreement for the establishment of a chemical plant to process our lithium locally, is very weak to say the least.
We note with concern, that under Schedule Two (2) of the lease agreement, the establishment of a local chemical plant by the company is not mandatory, but contingent on the conduct of a scoping study to determine the economic viability of the processing of lithium in Ghana.
Even more worrying, is the fact that, paragraphs 1(b)(c) and (d) of schedule two (2) of the lease agreement, envisages the inability of the company (Barari DV) to meet this requirement. This makes nonsense of the claim by government that no raw lithium will be exported from Ghana under the agreement.
II) Secondly, there are no specific provisions in the mining lease that emphasize Ghana’s control over the lithium mining value chain and the benefits thereof.
In the extractive sector, the ability of a country to optimize gains from the value chain is the surest way of domesticating benefits.
The NDC wants a deal that provides a clear and unambiguous strategy for maximizing the benefits of lithium mining through value chain participation. There is therefore the need for mandatory requirements for the local processing of raw lithium before it is exported out of the country and a 100% off-taker for the by-products thereof (i.e Feldspar, Silica, Kaolin etc.) for local industries and manufacturing companies.
III) On the claim by government, that Barari DV will be paying corporate tax of 35% under the deal, it is important for government to clarify the status of the company and provide the full facts relative to concessions that have been granted the company.
*What the Mining Lease expressly provides is that, Barari DV shall pay taxes in accordance with the mining laws of Ghana, without more.
We are however told that the Company is registered under the Ghana Free Zones Authority and is entitled to a 10-year tax holiday, when such tax concessions are ordinarily not granted to mining companies in the country. This if true, will deprive the country of corporate taxes during the first ten years of the Ewoyaa Lithium project. This will effectively limit Ghana’s share to the paltry 10% royalty and marginal benefits from our 13% carried interest and the 6% equity held by the Minerals Income Investment Fund (MIIF).
It is therefore imperative, for government to clarify the status and tax obligation of Barari DV and its parent company. Ghanaians deserve to know whether or not the company is a free zone company and why a mining company should be accorded free zone status. Ghanaians deserve to know all the concessions government is giving the company (Barari DV/Atlantic Lithium) for a holistic assessment of the benefits of the deal.
Beyond that, strict provisions on tax compliance and enforcement are required to ensure that the state is not cheated through transfer pricing and creative accounting.
IV) It is important to make the point, that government’s boastful claim about securing a 10% Royalty under the deal, is a celebration of mediocrity.
It is worthy of note, that the prevailing royalty rate of 5% was based on section 25 of the Minerals and Mining Act, 2007 (ACT 703), which provides for a royalty rate of not less than 3% and not more than 6%. This law was amended by the erstwhile NDC/Mahama government, as far back as 2015 by ACT 900, which has made the Royalty rate open-ended and subject to negotiations.
Also, the prevailing industry royalty rate of 5% relates to the country’s traditional minerals such as gold, bauxite etc. The Barari-Lithium agreement is the first deal for the exploitation of a Green Mineral in Ghana. Therefore, comparing the prevailing royalty rate of 5% to a 10% royalty rate for a Green Mineral like lithium, is an exercise in mediocrity.
More importantly, we think that government should have opted for a flexible range of royalty rate, which takes into account windfall profit of the company. This royalty arrangement has been adopted by Chile, which currently has a royalty rate range of 8% to 21% depending on certain variables. In similar vein, the 10% royalty rate secured by government could have been the baseline rate, subject to upward adjustment in cases of windfall revenue or profit by the company, if government had negotiated properly.
V) Also, the requirement in the mining lease agreement for Barari DV or its parent company, Atlantic Lithium, to list on the Ghana Stock Exchange, is problematic for several reasons, including the following;
● No specific time-frame has been provided in the mining lease agreement for such listing.
● Listing on the Ghana Stock Exchange (GSE) may not necessarily benefit Ghanaians as foreigners can invest on the GSE and/or hide behind Ghanaian fronts to buy shares.
● Over the years, similar arrangements have largely benefited a few rich and powerful Ghanaians and not the ordinary Ghanaian.
● Ghana’s own previous experience with the listing of Anglogold Ashanti shares on the Ghana Stock Exchange, where Ghanaians who purchased shares completely lost out, should awaken us to the fact that, listing on the Ghana Stock Exchange can go wrong.
Suggestions for the Minerals Income and Investment Fund (MIIF) to acquire the said 11% Equity in the Ghana operations of the Barari DV, for and on behalf of the people of Ghana, is therefore worth considering.
VI) These facts completely belie the claim by government, that Ghanaian participation in the Ewoyaa Lithium project will be 30%. Beyond Ghana’s Free Carried Interest of 13% and the wholly inadequate 6% Equity acquired by MIIF, there are no specific provisions in the lease agreement that provide with certainty, a Ghanaian participation rate of 30% in the foreseeable future.
VII) Again, it is interesting to note, that under the shareholding structure of the company, there is a 4.4% Equity in the name of “Previous Land Owners”. In the spirit of transparency, the NDC demands a full disclosure of the identities of the Beneficial Owners of that 4.4% Equity and how that was arrived at. Ghanaians deserve to know who these “previous land owners” are.
In the face of all these pertinent issues, particularly, the non-existence of a feasibility report and a mandatory requirement for the local processing of our lithium resources, the NDC is of the view, that the Ghana-Barari Lithium deal is not in the best interest of Ghana. Thus, the ratification of the Mining Lease agreement executed by the Akufo-Addo/Bawumia NPP Government, should not even arise at this stage.
It is our considered position, that Parliament should not consider the ratification of the Lease Agreement until all these pertinent issues are satisfactorily addressed in the best interest of Ghanaians.
Member of Parliament (MP) for Pru East constituency, Dr Kwabena Donkor says the 15-year mining lease granted to Barari DV Ghana Limited will benefit the nation if effectively managed.
According to him, the most important thing the nation should look at is the mining of green minerals holistically.
Speaking on JoyNews’ Newsfile on Saturday, December 8, the Pru East MP stated that he would prefer the nation gets a law that either comes under a Legislative Instrument – specific to green minerals or amend the existing mining and minerals law to make provision for green minerals.
“Very little emphasis is being placed on the by-product in the public space, the three major by-products, and the impact on our industralisation,” he added.
Dr.Kwabena Donkor
The National Democratic Congress MP maintained that these by-products only address a concern.
Dr Donkor stressed that the discussion of the lithium deal “if properly managed on industralisation and manufacturing, the downstream effect will help this country.”
Meanwhile, the Minister for Lands and Natural Resources, Samuel Abu Jinapor says that the mining deal granted to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited is in the best interest of the country.
According to him, the deal will ensure that Ghanaians fully benefit from the nation’s natural resources.
In a press statement issued by the Lands Ministry on Friday, October 27, the Minister said he would not undertake any transaction or agreement that does not have the national interest and the wellbeing of the Ghanaian people at heart.
“The attention of the Ministry of Lands and Natural Resources has been drawn to a statement issued by the Minority in Parliament and some concerns raised by a section of the public in respect of the mining lease granted to Barari DV Ltd (hereinafter referred to as the “Company”) for the exploitation of lithium at the Ewoyaa concession.”
“The Ministry welcomes the public interest and intense scrutiny of transactions for the exploitation and management of the natural resources of our country, as this is the best way of ensuring that these minerals inure to the benefit of the Ghanaian people.”
The Minister in the statement also assured that all the laws concerning such agreements will be followed throughout.
Background
Ghana has granted a 15-year mining lease to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, to commence the construction and mining of lithium at Ewoyaa in the Mfantseman Municipality of the Central Region.
The lease incorporates new and enhanced terms intended to ensure that the country benefits, optimally, from this mineral. This includes an increase in royalty rate, state and Ghanaian participation, as well as value addition to the mineral mined.
The granting of the mining lease follows the completion of prospecting and feasibility studies by the company, as well as a series of negotiations between the Government and the Company.
The lease covers an area of approximately 42.63 square kilometres and grants the company the exclusive right to work and produce lithium and associated minerals in the area, in accordance with the mining laws of the country.
Lithium is one of the main minerals used in the production of lithium-ion batteries, which is being promoted as a substitute for fossil fuels, as the world continues to battle with climate change.
