Ukraine Nuclear Plant Is Out Of Control: UN Nuclear Chief

The UN nuclear chief has disclosed that Europe’s largest nuclear power plant in Ukraine “is completely out of control” and issued an urgent plea to Russia and Ukraine to quickly allow experts to visit the sprawling complex to stabilize the situation and avoid a nuclear accident. Rafael Grossi, Director-General of the International Atomic Energy Agency, said in an interview Tuesday with The Associated Press that the situation is getting more perilous every day at the Zaporizhzhia plant in the southeastern city of Enerhodar, which Russian troops seized in early March, soon after their Feb. 24. invasion of Ukraine. “Every principle of nuclear safety has been violated” at the plant, he said. “What is at stake is extremely serious and extremely grave and dangerous.” Grossi cited many violations of the plant’s safety, adding that it is “in a place where active war is ongoing,” near Russian-controlled territory. The physical integrity of the plant hasn’t been respected, he said, citing shelling at the beginning of the war when it was taken over and continuing information from Ukraine and Russia accusing each other of attacks at Zaporizhzhia. There is “a paradoxical situation” in which the plant is controlled by Russia, but its Ukrainian staff continues to run its nuclear operations, leading to inevitable moments of friction and alleged violence, he said. While the IAEA has some contacts with staff, they are “faulty” and “patchy,” he said.
Chernobyl Power Plant Captured By Russian Forces -Ukrainian Official
Grossi said the supply chain of equipment and spare parts has been interrupted, “so we are not sure the plant is getting all it needs.” The IAEA also needs to perform very important inspections to ensure that nuclear material is being safeguarded, “and there is a lot of nuclear material there to be inspected,” he said. “When you put this together, you have a catalog of things that should never be happening in any nuclear facility,” Grossi said. “And this is why I have been insisting from day one that we have to be able to go there to perform this safety and security evaluation, to do the repairs and to assist as we already did in Chernobyl.” The Russian capture of Zaporizhzhia renewed fears that the largest of Ukraine’s 15 nuclear reactors could be damaged, setting off another emergency like the 1986 Chernobyl accident, the world’s worst nuclear disaster, which happened about 110 kilometers (65 miles) north of the capital Kyiv. Russian forces occupied the heavily contaminated site soon after the invasion but handed control back to the Ukrainians at the end of March. Grossi visited Chernobyl on April 27 and tweeted that the level of safety was “like a `red light’ blinking.” But he said Tuesday that the IAEA set up “an assistance mission” at Chernobyl at that time “that has been very, very successful so far.” The IAEA needs to go to Zaporizhzhia, as it did to Chernobyl, to ascertain the facts of what is actually happening there, to carry out repairs and inspections, and “to prevent a nuclear accident from happening,” Grossi said. The IAEA chief said he and his team need protection to get to the plant and the urgent cooperation of Russia and Ukraine. Each side wants this international mission to go from different sites, which is understandable in light of territorial integrity and political considerations, he said, but there’s something more urgent and that is getting the IAEA team to Zaporizhzhia. “The IAEA, by its presence, will be a deterrent to any act of violence against this nuclear power plant,” Grossi said. “So I’m pleading as an international civil servant, as the head of an international organization, I’m pleading to both sides to let this mission proceed.” Grossi was in New York to deliver a keynote speech at Monday’s opening of the long-delayed high-level meeting to review the landmark 50-year-old Nuclear Nonproliferation Treaty aimed at preventing the spread of nuclear weapons and eventually achieving a nuclear-free world. In the interview, the IAEA chief also spoke about efforts to revive the 2015 nuclear deal between Iran and major powers that the Trump administration abandoned in 2018 and the Biden administration has been working to renew. Grossi said there is “an ongoing effort to try to go for yet another meeting or round to explore possibilities to come to an agreement.” He said he heard the meeting “could be soon.” U.S. Secretary of State Antony Blinken told the NPT review conference on Monday that Iran “has either been unwilling or unable” to accept a deal to return to the 2015 agreement aimed at reining in its nuclear program. Grossi said “there are important differences among the negotiating parties” and important verification issues related to past activities that Iran needs to address. “It’s not impossible, it’s complex,” he said. If the nuclear agreement, known as the JCPOA, is not extended, he said some IAEA inspections will continue. But the JCPOA provides for additional transparency and inspections “which I deem as extremely important, very necessary, because of the breadth and depth of the nuclear program in Iran,” he said. Grossi stressed that cooperating with the IAEA, answering its questions, allowing its inspectors to go wherever they need to be, is essential for Iran to build trust and confidence. “Promises and good words will not do,” he said. On another issue, Grossi said last September’s deal in which the United States and Britain will provide Australia with nuclear reactors to power its submarines requires an agreement with the IAEA to ensure that the amount of nuclear material in the vessel when it leaves port is there when it returns. He said Australia hasn’t decided what type of vessel it will be getting, so while there have been preparatory talks, substantive talks can’t begin. Because it’s a military vessel, Grossi said, “there are lots of confidential and protection of information measures that need to be embedded into any such agreement, so it’s very complex technologically.”
UK Plans Eight New Nuclear Reactors To Boost Production

Ghana: Tullow Collaborates With Invest In Africa To Deliver Supplier Finance Readiness Programme

Tullow Ghana, lead operator of Ghana’s Jubilee Oil Field has concluded a 10-month long Supplier Finance Readiness Programme designed to provide selected suppliers impacted by the Covid-19 pandemic in the oil and gas industry in Ghana, financial and business advisory support to build financially resilient and sustainable businesses for the future. The programme, which was implemented by Invest In Africa (IIA), a private sector-led initiative focused on growing local businesses, brought together more than one hundred and fifty (150) individual participants and over thirty-five (35) companies to undertake a rigorous training in financial modelling, business plan preparation, financial management, corporate governance, and business risk management over the programme period. The training also gave participants, important financial toolkits to enhance their interactions with lending institutions and strengthen their capacity and preparedness to access finance. Overall, one hundred and fifty-one (151) suppliers gained knowledge of various funding options as well as insights into financial restructuring opportunities, while thirty-six (36) businesses received one-on-one business advisory services. Speaking at the graduation ceremony in Accra, Managing Director for Tullow Ghana, Wissam Al-Monthiry said “Tullow Ghana will continue to support local capacity development through various targeted knowledge sharing interventions to equip local companies and increase their participation in the industry while making them globally competitive”.
Wissam-Al-Monthiry, Managing-Director For Tullow Ghana Speaking At The Graduation Ceremony
Participating businesses were selected from Tullow’s supplier list and IIA’s African Partner Pool (APP) companies operating in the oil and gas industry in Ghana.

Ghana: Odumase Court Jails Man 12 Months For Stealing ECG Transformer Parts

The Odumase-Krobo Circuit Court in the Eastern Region has sentenced a 42-year-old man to 12 months’ imprisonment for stealing parts of ECG transformers at Kodjonya, a suburb of Odumase-Krobo. The convict, Isaac Azu, was said to have been spotted around an ECG transformer at Kodjonya at about 1:30 am on 31st July 2022 by a resident of the area. Eyewitnesses raised an alarm and that attracted some other residents of the area. The convict was given a hot chase and grabbed him in possession of some parts of the ECG transformer. According to sources at the ECG, the residents took the suspect to the Odumase Police Station where he was detained after admitting to stealing parts of the transformer. The police, subsequently, processed him for court where he was sentenced by His Honour Frank Gbeddy on Wednesday, 3rd August 2022. The items he stole were identified as six fuses, earth cables and a switch all valued at Gh¢2731.38. The transformer was off due to the blackout in the Krobo area.     Source: https://energynewsafrica.com

Ghana:Breaking News: Ban On LPG Stations Under Construction Lifted

Government of Ghana has lifted a ban it placed on about 61 LPG refilling stations which were at the various stages of completion. This was contained in a statement issued by the National Petroleum Authority (NPA). The lifting follows a sit down strike by petroleum tanker drivers in the Republic of Ghana in protest of the continuous ban on the stations.
Ghana, Niger Deepen Petroleum Trade Relations
   

G7 Mulls Options To Restrict Russian Oil Profits

The Group of Seven (G7) wealthy nations are looking at blocking the transportation of Russian oil among other options to deprive Moscow of bumper revenues amid its invasion of Ukraine, unless it heeds a price cap. In a statement released by Britain, G7 foreign ministers said they were considering “a comprehensive prohibition of all services that enable transportation of Russian seaborne crude oil and petroleum products globally, unless the oil is purchased at or below a price to be agreed in consultation with international partners.” “In considering this and other options, we will also consider mitigation mechanisms alongside our restrictive measures to ensure the most vulnerable and impacted countries maintain access to energy markets including from Russia.” The G7 is made up of Britain, Canada, France, Germany, Italy, Japan, and the United States. Many countries have imposed sanctions on Russia following its invasion of Ukraine, which Moscow calls a “special military operation”, but key oil consumers China and India have stepped up imports of discounted Russian barrels to record levels.  Despite Russia’s oil exports hitting their lowest levels since last August, its export revenue in June increased by $700 million month on month due to higher prices, 40% above last year’s average, the International Energy Agency said last month. Western leaders have proposed addressing that through an oil price cap to limit how much refiners and traders can pay for Russian crude – a move Moscow says it will not abide by and can thwart by shipping oil to states not obeying the price ceiling. U.S. Treasury Secretary Janet Yellen pitched the idea of the price cap to Asian leaders on a foreign tour last month and told Reuters she had held “encouraging” talks with India.  Some traders and oil market analysts have expressed doubts a price cap would work as Russia has found ways to ship its oil to Asia without the use of Western ship insurance. Moscow could also stop exports of some oil altogether, leading to a further spike in energy prices G7 members have scrambled to find ways to plug energy shortages and tackle soaring prices while sticking to their climate commitments amid the tensions with Russia.  “As we phase out Russian energy from our domestic markets, we will seek to develop solutions that reduce Russian revenues from hydrocarbons, support stability in global energy markets, and minimise negative economic impacts”, the G7 statement said.     Source: Reuters

Senegal Faces Key Technology Decisions In Its Search For The Optimal Gas-To-Power Strategy (Opinion)

By: Joonatan Huhdanmäki   On the back of its recent and substantial oil and gas discoveries, Senegal is now preparing to ensure that its vast natural gas resources will help meet future electricity demand and put an end to the excessive electricity prices undermining its economy. Senegal’s domestic gas reserves will be mainly used to produce electricity. Authorities expect that domestic gas infrastructure projects will come online between 2025 and 2026, provided there is no delay. The monetization of these significant energy resources is at the basis of the government’s new gas-to-power ambitions.  In this context, the global technology group Wärtsilä conducted in-depth studies that analyse the economic impact of the various gas-to-power strategies available to Senegal. Two very different technologies are competing to meet the country’s gas-to-power ambitions: Combined-cycle gas turbines (CCGT) and Gas engines (ICE). These studies have revealed very significant system cost differences between the two main gas-to-power technologies the country is currently considering. Contrary to prevailing beliefs, gas engines are in fact much better suited than combined cycle gas turbines to harness power from Senegal’s new gas resources cost-effectively, the study reveals. Total cost differences between the two technologies could reach as much as $480 million  until 2035 depending on scenarios. Two Competing And Very Different Technologies The state-of-the-art energy mix models developed by Wärtsilä, which builds customised energy scenarios to identify the cost optimal way to deliver new generation capacity for a specific country, shows that ICE and CCGT technologies present significant cost differences for the gas-to-power new build program running to 2035. Although these two technologies are equally proven and reliable, they are very different in terms of the profiles in which they can operate. CCGT is a technology that has been developed for the interconnected European electricity markets, where it can function at 90% load factor at all times. On the other hand, flexible ICE technology can operate efficiently in all operating profiles, and seamlessly adapt itself to any other generation technologies that will make up the country’s energy mix. In particular our study reveals that when operating in an electricity network of limited size such as Senegal’s 1GW national grid, relying on CCGTs to significantly expand the network capacity would be extremely costly in all possible scenarios. Cost differences between the technologies are explained by a number of factors. First of all, hot climates negatively impact the output of gas turbines more than it does that of gas engines. Secondly, thanks to Senegal’s anticipated access to cheap domestic gas, the operating costs become less impactful than the investment costs. In other words, because low gas prices decrease operating costs, it is financially sound for the country to rely on ICE power plants, which are less expensive to build. Technology Modularity Also Plays A Key Role. Senegal is expected to require an extra 60-80 MW of generation capacity each year to be able to meet the increasing demand. This is much lower than the capacity of typical CCGTs plants which averages 300-400 MW that must be built in one go, leading to unnecessary expenditure. Engine power plants, on the other hand, are modular, which means they can be built exactly as and when the country needs them, and further extended when required. The numbers at play are significant. The model shows that if Senegal chooses to favour CCGT plants at the expense of ICE-gas, it will lead to as much as 240 million dollars of extra cost for the system by 2035. The cost difference between the technologies can even increase to 350 million USD in favor of ICE technology if Senegal also chooses to build new renewable energy capacity within the next decade. Risk-Managing Potential Gas Infrastructure Delays The development of gas infrastructure is a complex and lengthy endeavour. Program delays are not uncommon, causing gas supply disruptions that will have a huge financial impact on the operation of CCGT plants. Nigeria knows something about that. Only last year, significant gas supply issues have caused shutdowns at some of the country’s largest gas turbine power plants. Because Gas turbines operate on a continuous combustion process, they require a constant supply of gas and a stable dispatched load to generate consistent power output. If the supply is disrupted, shutdowns occur, putting a great strain on the overall system. ICE-Gas plants on the other hand, are designed to adjust their operational profile over time and increase system flexibility. Because of their flexible operating profile, they were able to maintain a much higher level of availability The study took a deep dive to analyse the financial impact of 2 years delay in the gas infrastructure program. It demonstrates that if the country decides to invest into gas engines, the cost of gas delay would be 550 million dollars, whereas a system dominated by CCGTs would lead to a staggering 770 million dollars in extra cost. Whichever way you look at it, new ICE-Gas generation capacity will minimize the total cost of electricity in Senegal in all possible scenarios. If Senegal is to meet electricity demand growth in a cost-optimal way, at least 300 MW of new ICE-Gas capacity will be required by 2026.     The Writer is a Senior Analyst for Energy, Wärtsilä  

Ghana: Cabinet Likely To Lift Ban On 61 LPG Projects This Week-Energy Minister

Ghana’s Minister for Energy, Dr Matthew Opoku Prempeh, has hinted that Cabinet is likely to lift the ban placed on some 61 LPG projects which were under various stages of construction and or completion this week to their owners. According to the Minister, the Energy Ministry sent a Memo on 29th July, 2022 to Cabinet for consideration on those projects, adding that the Cabinet is meeting tomorrow (Wednesday) to discuss several issues. He said he was hopeful there would be good news after the cabinet meeting tomorrow. “I’m sure government will take a second look at the issue. What NPA has proposed to the government is that the 61 LPG stations should be used as cylinder exchange points for the LPG Cylinder Recirculation Model Programme. This is good and I’m sure when Cabinet meets tomorrow, they will decide on it,” Dr. Matthew Opoku Prempeh said while addressing some issues in the energy sector on Accra-based Asempa FM. The Minister’s assurances come on the back of a sit-down strike by the Ghana Tanker Drivers Union on Monday. The tanker drivers claim that the continuous ban on the 61 LPG projects was affecting the investments of the operators. They further claim that their employers were failing to increase their salaries because they have invested heavily in those projects, thereby, limiting their cash flow.     Source: https://energynewsafrica.com

Ghana: LPG Marketers Shut Down Retail Outlets Due To Tanker Drivers’ Strike

Liquefied Petroleum Gas (LPG) retail outlets in the country have been shut down by operators following a sit-down strike by gas tanker drivers in the West African nation. When the energynewsafrica.com team visited some of the LPG outlets in Tema, in the Greater Accra Region, the stations were closed with ‘No Gas’ signage placed at the entrance to notify their customers. “We are just pleading with them that whatever their problem is, they should resolve it so that they can start producing, so we can get some (LPG) to do our household chores,” one of the consumers said. “I use gas for my business. Without it, it would be hard. I have to resort to charcoal until they resume work,” another complained. Addressing a press conference in Tema on Monday, Chairman of the Ghana Petroleum Tanker Drivers Union, George T. Nyaunu, raised concerns about the ban on the LPG projects under various stages of construction and sanctions against transporters by the National Petroleum Authority (NPA) over claims that tanker drivers have been tampering with their cargo tracking seal. He noted that the ban is affecting the investments by the LPG operators. “Most of them had borrowed to invest in the construction of these stations before 2017.  These investments by indigenous Ghanaian investors amount to not less than $10 million or approximately GH¢85 million. But with the imposition of the ban, these investments have been abandoned and are wasting away at various sites across the country for the past five years. “Most of these investments were done with loans contracted from banks in the country. This has put these investors under undue pressure from the banks to repay the loans at very high-interest rates, to the extent that some of our employers are being pursued through the courts and their assets being confiscated to defray these loans,” he explained. Meanwhile, the Executive Secretary of Chamber of Petroleum Consumers (COPEC), Duncan Amoah, reacting to the issues, called on the government to resolve the issues as soon as possible to avert LPG shortages. “The ban, we understand, has led to about 11% reduction in volumes for the operators over the past one year instead of a projected 15% increase year on year. “We are currently inundated with calls from obviously stranded consumers who depend on these outlets seeking answers which we don’t have,” the statement pointed out.   Source: https://energynewsafrica.com  

Ghana: Diesel, Petrol Prices Drop By Almost 40 Pesewas

Major Oil Marketing Companies in the Republic of Ghana have reduced the prices of fuel at the pump following a drop in crude oil prices. As of Monday morning, leading oil marketing companies namely GOIL, Shell and TotalEnergies have all adjusted their prices downward. GOIL reduced its pump price for diesel from Gh¢13.63 per litre to Gh¢13.26, representing 37 pesewas while Super (petrol) price witnessed a reduction of 35 pesewas from Gh¢11:30 per litre to Gh¢10:95 per litre. Shell and TotalEnergies also reduced their pump prices by over 30 pesewas. A litre of petrol and diesel are now sold at Gh¢10.95 and Gh¢13.30 respectively at the retail outlets of both shell and TotalEnergies. Likely, some of the smaller OMCs will also adjust their pump prices by a small margin since they have always been selling below the prices sold by the major players. As of 12:45 GMT on Tuesday, WTI was trading at $94.54 per barrel while benchmark crude Brent was trading at $100.5.   Source: https://energynewsafrica.com

Ghana: ECG Customers Face Utilities Court Over Illegal Connection

A Ghanaian court responsible for the prosecution of those engaged in power theft will start prosecuting hundreds of ECG customers who tamper with their meters and consume power illegally. This was disclosed by the Managing Director of the Electricity Company of Ghana (ECG), Samuel Mahama. “The power court, which is also called the utility court, is ready and will start active prosecution of cases,” Mr Mahama said. The power distribution company will, from Monday, also commence meter auditing after giving customers more than a one-month moratorium to report any fault to ECG. Speaking at a press briefing last week, the Managing Director of ECG, Samuel Mahama said the company would deploy a team of task force and police personnel to homes to audit all meters and ensure all faulty, tampered meters and illegal connections are fished out of the system. Thus, he warned that anyone caught during the process would be prosecuted by the utility court for stealing. “Anybody and I repeat, anybody caught stealing power will be charged with stealing and will be made to pay a hefty fine or a prison sentence,” he warned.     Source: https://energynewsafrica.com    

Zambia: Ghana’s NPA,  Zambian Petroleum Downstream Regulator Deepen Ties To Fight Fuel Adulteration

Ghana’s petroleum downstream regulator, NPA, continues to strengthen its ties with the Zambian counterpart, Energy Regulatory Board (ERB). Officials of the two regulatory bodies have been visiting each other to understudy to improve their regulatory mandate. As part of an effort to strengthen the bond, the Chief Executive Officer of Ghana’s National Petroleum Authority (NPA), Dr Mustapha Abdul-Hamid, embarked on a working visit to the Zambian Energy Regulatory Board (ERB). Dr Abdul-Hamid, accompanied by Ghana’s High Commissioner in Zambia, Her Excellency Iddrisu Khadija, together with some NPA board and management members, visited the ERB head office in Lusaka. The tour is premised on major successes achieved by the fuel marking programme in both countries and shared lessons on the implementation of the fuel marking programme with the view of improving current operations. Briefing the media on what necessitated the visit, the NPA boss said before the Zambian regulatory body began its implementation of the fuel marking programme in 2017, they sent a seven-member team to understudy Ghana’s model of the petroleum product marking scheme in 2015. He said the Zambian team was taken through the programme set-up, staffing, contractor & subcontractor payments, margins, benefits, challenges and legislation, among others. Dr Abdul-Hamid said ERB sent another two-group delegation in 2018 comprising key fuel marking operational staff, senior management and board to interact with NPA to gain further insights on the rollout and implementation of both the marking and monitoring activities of the Ghana fuel marking programme. Dr Abdul-Hamid was elated to know that since the successful launch and rollout of the fuel marking in Zambia, the programme has chalked major success. He mentioned product quality compliance rate at the retail outlet has increased to over 96 per cent and illegal fuel vendors have been successfully prosecuted and convicted. Despite Ghana’s major successes in the fuel marking programme, the NPA Chief Executive said: “We still want to learn from the Zambian programme to help us improve on our operations in the field of fuel marking and regulation, as well as foster a healthy collaboration in the area of fuel integrity monitoring between our institutions.” The ERB is a statutory body charged with the responsibility of regulating the energy sector in Zambia. The ERB is generally responsible for ensuring that energy enterprises earn a reasonable rate of return on their investments and that consumers are given quality products and services.     Source: https://energynewsafrica.com

Nigeria: Gov’t To Take Delivery Of Transformers Procured From Siemens In September

Nigeria is expected to take delivery of some power transformers ordered by the Federal Government under President Muhammadu Buhari’s Presidential Power Initiative (PPI) from Italy in September 2022. The transformers, procured through energy firm Siemens, have successfully passed the factory acceptance test in Trento, Italy. A statement from the office of the Minister for Power, Engr Abubakar D. Aliyu, said the first batch of the transformers is expected to arrive in Nigeria in September 2022. The Managing Director of Federal Government of Nigeria Power Company (FGN-Power), Mr Kenny Anuwe, who led a delegation which had engineers from Transmission Company of Nigeria (TCN), witnessed the factory acceptance test conducted on 28th July 2022 in Trento, Italy. The Minister for Power had led a delegation to Germany in April when he paid visits to Siemens Energy factories in Berlin and Frankfurt, where he held meetings with the senior leadership of Siemens Energy on the need to fast-track the delivery of the early orders that would start the transformation of Nigeria’s electricity. Commenting on the latest feat on the PPI, Engr Aliyu said: “The successful factory acceptance test shows Nigeria’s engagement with Siemens Energy is on track. It also shows the Federal Government’s commitment to addressing Nigeria’s electricity challenges.” In December 2021, the Minister for Finance, Zainab Ahmed, and the Minister for Power, Engr Abubakar D. Aliyu, secured the approval of the Federal Executive Council of €63 million (Euro) for the procurement of equipment to boost power supply under the Presidential Power Initiative (PPI)—whose first phase would provide 10 mobile power substations and 10 transformers. In 2018, President Buhari initiated the PPI that would enable Siemens Energy to upgrade Nigeria’s electricity systems.       Source: https://energynewsafrica.com

Ghana: Frustrated Tanker Drivers Declare Nationwide Strike On August 1

Petroleum tanker drivers’ unions in the Republic of Ghana have declared a sit-down strike from Monday, 1st August 2022 to protest poor working conditions and some decisions by the regulator, NPA, which are affecting them. The tanker drivers’ unions, comprising Gas Tanker Drivers Union, Ghana National Petroleum Tanker Drivers Union, GOIL Tanker Drivers Union and those who transport premix and aviation pointed out that the regulator has fixed two seals namely biometric and cargo tracking seals on each tanker truck. While the biometric seal determines the number of products in the tanker, the cargo seal enables the regulator, NPA, to monitor the movement of the tanker. Speaking to energynewsafrica.com, Chairman of the Ghana Petroleum Tanker Drivers Union, George T. Nyaunu, noted that the National Petroleum Authority (NPA) has been sanctioning his members over claims that they have been tampering with the cargo seal. He said the sanctions the NPA applies range from a one-month suspension from loading and charging transporters for the alleged tampering with the seal. He said the drivers cannot be bearing the consequences of acts they have not committed, hence, their resolve to embark on a sit-down strike on Monday. Speaking to energynewsafrica.com on the same issue, the Chairman of Bulk Tanker Drivers Union, Clement Ampadu, blamed the NPA, Ministry of Energy and Transport Ministry for the plight of tanker drivers in the country. He said it appears both the Energy and Transport Ministries are not interested in helping tanker drivers to resolve their grievances. Regarding the alleged tampering with the cargo seal, Mr Ampadu said he wrote a letter and personally delivered it to the Ministry of Transport and shared it with the Minister on WhatsApp. He said for more than one month, he had not received any response from the sector Minister. In his response to whether he had attempted to meet the Energy Minister in his office regarding their concerns, Mr Ampadu fumed: “As for Napo (about the Minister for Energy), I don’t want to hear his name in my ears. When they get the power, they think we’re fools. We have been to his office more than ten times to go and meet him but we have been unsuccessful. Anytime my secretary and I go there, the Minister’s secretary will tell us to book an appointment which we will do. We will leave and when we don’t hear from them, we will call and go there again. We have been going there more than ten times and they keep telling us to book appointments. “So we’re going to park our trucks for the owners and the government agencies who don’t value drivers to go and load the products and transport them by themselves,” he said. When contacted, the Communication Manager of NPA, Mohammed Abdul Kudus, said the issue of the strike had reached their attention and might respond on Monday.   Source: https://energynewsafrica.com

Ghana: Minority’s Claim BOST Head Office Project Cost Gh¢78Million Is Pure Lies- Says BOST

The Bulk Oil Storage and Transportation (BOST) Company Limited has described as false claims by the opposition Minority Members of Parliament that it has inflated the cost of the contract for its head office building project by 100 per cent. According to BOST, the initial cost of the project, which started in 2016 under the tenure of Mr Kingsley Kwame Awuah Darko during the Mahama administration, was revalued from $39 million to $49.6 million in 2020 but not $78 million. The Ranking Member of Mines and Energy, John Jinapor, at a news conference on Thursday, claimed BOST had bloated the cost of its head office building project by 100 per cent. “We noted from recent developments based on documents available to us that the original contract, which was valued at $39,000,000.00 (Thirty-Nine Million Dollars), ballooned to a whopping $78,000,000.00 if the two-tower building is accounted for based on the current cost of the single unit valued at $39,000,000.00 (Thirty-Nine Million Dollars). This means the building has been inflated by 100% over the original contract,” he said. However, explaining the circumstances leading to the revaluation of the cost of the project, BOST said when the current government took over office in 2017; there were allegations that the contract was bloated so the project was halted for value for money audit to be conducted. In a statement issued Friday, BOST said the process was completed in August 2020 with a new  value  of  $49.6 million, considering the time value of money amongst other technical considerations. “In October 2020, the Board of Directors of BOST resolved that due   to   financial constraints BOST could not   afford the twin-towers but rather proceed to negotiate        with the contractor   to procure a   single block. “The negotiated cost for the single block was $23.5 million (VAT Exclusive). “In September 2021, we applied and    received a no-objection from   the   Ministry of Finance to procure the funds from an identified bank. “The 2020 Auditor General’s report on page 6, clause 13 flagged the Procurement       Irregularity by the then management so that meant that this current management        had to cure    the breach on the original contract ($39 million twin-tower in 2015) before any new variation ($23.5 million single tower in 2020) could be submitted to the Public Procurement Authority (PPA) for approval.” According to BOST, in May 2022, a letter from PPA with reference PPA/CEO/1079/05/22, following a request for ratification by BOST, the ORIGINAL $39 million contract for the twin-tower was finally ratified. It further said in May 2022, a request was made to   PPA   to vary the original $39 million twin-tower contract to a $23.5 million single-tower, and it was granted and   paved the way to execute an amendment to the original contract and it was done on the 31st of May 2022. The company said full documentation and explanation on this project were given to the Parliamentary Select Committee on Mines and Energy as per their request on May   17, 2022, with ref: PS/ME/22/40 and “our response on May 27, 2022, with ref:BOST/SCR.40/PARL/OPRE/SF.1/36734. “BOST is currently occupying rented premises and in our view, securing the single block at the       $23.5   million will help     to do   away with the burden of the rising cost of rent in the current premises. The tower blocks are not the same in terms of the facilities they harbour. The one BOST is acquiring is customized to accommodate the staff of the      company based on the corporate structure which existed at the time of the contract. The other block was intended to be rented to raise further income for BOST. “The two blocks per the valuer’s report in 2020 cost $49.6 million and the simplistic arithmetic of multiplying the original contract cost submitted to the PPA for ratification by 2 to claim the blocks cost $78 million is simply erroneous. “These are the facts about the BOST Head Office building which started in 2016 and is yet to be occupied by the company. “We, at this point, will urge the Minority to, at least, seek better understanding and clarification of issues before engaging the press because at some points in time, failure to do due diligence could result in embarrassment. It is the contract signed without resort to due process which by law was submitted for ratification by the PPA before any variation of the terms could be attempted by the current management. “Money has time value and what costs $39 million in 2015 would most likely cost something higher six years later. These are fundamental principles of finance which cannot be overlooked. “The current management of BOST has used the Procurement Law to correct the anomalies of the processes and through a transparent process decided to acquire half of the twin towers to house their operations. “With an independent valuer involved, the figures arrived at were a true and fair reflection of the current pricing of the project and we are confident that the decision is in the best interest of the taxpayer. “We, therefore, urge the public to ignore the ill-informed allegations of the Minority and be assured that BOST is safe and secure in the hands of the current management. “The ever-loss-making BOST is set to announce a huge turnaround in the next couple of weeks due to the diligence and hard work of the current management. Our collective interest is secured, and we are working hard to ensure better days of fuel security in the country,” the statement concluded. Click on the link below for PPA’s document Approval to BoST for Variation (1)       Source: https://energynewsafrica.com