[ 2016-10-27 ]

NDC Trades Ghana Gas To China For 19 Years
The New Patriotic Party (NPP) has observed that
the country has reached a stage where it is moving
from a crisis to a state of catastrophe.

The NPP has also decried the move to collateralize
the country’s gas for a loan from China.

Revealing some aspects of this intended agreement
between Ghana and China at a media briefing in
Accra yesterday, NPP’s policy advisor, Boakye
Agyarko, said, “The Mahama Cabinet has recently
given approval to a proposal which they hope will
entice the China Development Bank to re-activate
the remaining $2 billion of the $3 billion loan
which the Chinese discontinued after disbursing $1
billion of it to Ghana.”

In the original Master Facility Agreement, he
said, “President Mahama committed Ghana to
supplying, as collateral security, 13,000 barrels
per day of crude oil up to 2027 to service the CDB
facility. The Chinese eventually considered this
as insufficient because of the slump in oil
prices, refusing to release the remaining
tranches.”

Mr. Boakye Agyarko said in the new offer to CDB,
the Mahama government is proposing to export to
the Chinese all the Natural Gas Liquids (NGLs) to
be processed by Ghana Gas Processing Plant at
Atuabo from 2018, estimated at a value of $1.5
billion.

Quoting from the ‘Decisions Memorandum’ on
the facility drafted by the Mahama administration
this year, Mr. Boakye Agyarko said, the
government intends to “release up to US$450
million from the revenue accruing from the sale of
Lean Gas over 2016 to 2018 for purposes of
resolving shortfalls in GoG payment obligations
under the MFA for 2016 to 2021.”



Crisis

The NPP policy advisor and head of the Manifesto
Committee decried the extent to which the
Mahama-led National Democratic Congress (NDC)
administration has run down the economy of Ghana.

His reason was that “The NDC government has
plunged the country into a needless power crisis
as a result of poor management and bad
governance.”

“That” according to him, “has significantly
eroded the solid economic prospect of Ghana post
2008.

“In spite of these sad developments, the NDC
government never saw the need to invest even one
dollar to provide power for the people.”

Mr Agyarko revealed that “All the megawatts of
power generation claimed by the NDC are from
projects implemented by the NPP, with a
substantial portion of the projects funded with
the Jubilee Bond of $750 million.” He
specifically mentioned the Bui Hydro Power
(400MW), TT1PP (126 MW), TT2PP (49MW), additional
108MW to the Akosombo Hydro Power, Kpone Thermal
Plant (220MW) and the Mine Reserve Plant (80MW),
among others.

He also talked of other private sector initiatives
facilitated by the then NPP government such as the
Asogli Power Plant (200 MW with an expansion plan)
and the 126 MW Osonor Thermal Power Plant (now
CENIT), saying, “In all, the NPP invested and
facilitated the addition of about 1,440MW of
generation capacity.”

Mr Boakye Agyarko posited, “Indeed, all the
major achievements that the NDC boasts of in the
energy sector today, including the discovery of
oil, were done by the NPP and inherited by the
NDC,” citing the $344 million US Exim Bank
facility which the NDC government used to extend
nationwide coverage of electricity by an
additional 30% under the Self Help Electrification
(Shep IV) programme.

He said it was approved by parliament on 16th
September, 2008 whiles noting with emphasis,
“The only modification done by the NDC was to
facilitate the procurement of luxury vehicles as
part of the loan agreement.”



Justification

It was for this and other reasons he said,
“Ghana is in crisis – avoidable, needless,
annoying – Mahama-made crisis,” describing it
as “a home-made crisis caused by a combination
of mismanagement, incompetence, corruption, greed,
visionlessness, recklessness, indecisive and
insensitive leadership. Under John Dramani Mahama,
Ghana has registered the biggest job losses ever
on record.”

He added, “Not even the PNDC retrenchments under
the IMF structural adjustment programme of the
1980s recorded the kind of unemployment crisis
Ghanaians have witnessed in the last three years
alone.”

He indicated, “Latest figures from the Ghana
Statistical Service show that Ghana’s economy
(including oil) shrunk by $1.8 billion last year
– the largest annual decrease in dollar terms on
record. In fact, it is even projected to get worse
this year.

“The Third Review under the IMF bailout
agreement, which was published this month,
projects the economy to grow by a mere 3.3% this
year, the worst in 22 years. Please note, 3.3% is
worse than the terrible economic situation
(registering 3.7% then) that inspired Ghanaians to
vote out the NDC in December 2000 after two terms
in office, to usher in Positive Change under the
able leadership of President John Agyekum
Kufuor,” he emphasized.

He was therefore, sure that “After their current
two terms, the NDC will be leaving office at the
end of this year by registering the worst economic
performance over an entire generation.” He
queried, “What future can this group of proven
nation wreckers build for you and your
children?”

Source - Daily Guide

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