Statement

GOVERNMENT MOVES TO TAKE OVER ABOADZE PLANT

The government is taking steps to takeover the entire 100% of the shares of the Aboadze Thermal Plant.

2. The decision has largely been precipitated by the manner in which our partner in the Takoradi joint venture, CMS Energy, has sought to sell their shares in the venture to TAQA. This was done without informing Ghana. In fact, it was done in complete disregard for our rights in the joint venture.

3. However, that transaction, if it had been concluded, would have forced us to partner a company we do not know. That was improper.

4. It is of no comfort to us that CMS believes our rights under the agreement remains intact, and that we have nothing to fear. Actually, we disagree. For instance, it is entirely possible that TAQA, if they had bought the shares, would have on-sold those shares to Ghana. The considerations of such a scenario would be different from those of Ghana buying the shares directly from CMS.

5. Consequently, we have advised CMS to hive off the Takoradi plant from their take-over discussions with TAQA.

6. Given that electricity makes a critical and strategic input into our economy, we view these matters with utmost seriousness.

7. In the circumstances, we have been compelled to seek purchase of the entire 100% of the shares in the Aboadze plant, and we are taking steps to make that happen.

Kwaku Kwarteng
Government Spokesperson on Finance & Economy