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Relocation of Ameri plant to Kumasi cost over bloated from $25.48m to $35.6m

The Africa Centre for Energy Policy (ACEP) has raised concern over plans by the Energy Ministry to move the Ameri Plant to Kumasi.

In a statement issued by ACEP, it has kicked against the idea, insisting that the processes have lacked transparency.

ACEP reveals that although the relocation according to the Energy Ministry is to cost $35.6 million, its checks have revealed that the cost involved is actually $25.48.

“The Minister quotes $35.6 million as the cost of the relocation in his 17th December 2021 letter to VRA. However, ACEP has sighted the original proposal from Mytilineos SA dated 22nd March 2021 to the Ministry, quoting $25.48 million for the same.

“Instead of negotiating the proposal of the sole-sourced offer downwards, the contract cost has instead increased by 40 percent. It is unclear what accounts for such a quantum leap from the proposal amount by Mytilineos SA,” ACEP notes in its 8-paged statement.

Aug. 3, 2022