Acting VRA CEO Ing. Obeng-Kenzo responds to $52m T1LEP allegations

In response to recent allegations leveled against the leadership of the Volta River Authority (VRA) by the New Voter Forum, the Acting CEO of VRA has issued a detailed rejoinder, providing clarity on the controversial $52 million single-source contract and the authority’s ongoing efforts to enhance the country’s energy infrastructure. The statement, made on February 18, 2025, seeks to counter claims of financial mismanagement and highlight the strategic importance of the ongoing projects.

The core of the allegations centers on a contract valued at $52,033,812.01 for the T1 Life Extension Programme (T1LEP), a major initiative aimed at upgrading key components of the VRA’s power plant to improve efficiency and reliability. The Acting CEO has strongly defended the contract, asserting that it was fully approved by the Public Procurement Authority (PPA) in accordance with the Public Procurement Act, specifically under Section 40(1)(a). According to the statement, this project is not only crucial for the plant’s operational sustainability but is also part of a broader strategy to ensure a continuous and reliable power supply to Ghana.

The statement emphasized that the T1LEP is designed to enhance the plant’s output by addressing critical components that have been in service for over 25 years. Notably, the condenser replacement, which has been a focal point of the allegations, is aimed at increasing the steam turbine’s output from 104 MW to an expected 116-120 MW. The initiative also includes a series of other crucial upgrades, such as replacing the gas turbine exhaust systems, rehabilitating the OTCS plant, and refurbishing turbine bearings, all intended to improve operational safety, reliability, and efficiency.

The Acting CEO also clarified the role of the Public Procurement Authority (PPA) in the approval process, underlining that all projects were thoroughly assessed and vetted before moving forward. He further assured that management is committed to transparency and maintaining strict adherence to procurement guidelines to avoid any potential abuse of power or financial mismanagement.

In particular, the Acting CEO provided an in-depth breakdown of the $52 million budget, highlighting which components had already been executed and which projects are still under negotiation. For instance, out of the total approved amount, $27.36 million has already been spent on executing essential upgrades, while some components remain on hold as further discussions with Original Equipment Manufacturers (OEMs) continue.

Regarding the procurement of generator rotor bearings, which were mentioned as potentially inflated and incorrect, the Acting CEO addressed concerns over the limited global supply of specialized parts. He explained that these specific bearings are essential for ensuring the reliability of the steam and gas turbines, but due to the discontinuation of production by the OEM, the scarcity of these parts has driven up costs. However, he assured stakeholders that the bearings are accurate and will be used during the next scheduled inspection of the turbines.

The statement also responded to claims about the potential delay in the replacement of critical parts, such as the condenser. The Acting CEO assured the public that the condenser would be replaced in the third quarter of 2025 as part of the ongoing overhaul, with the new installation expected to result in an increase of up to 12 MW in steam turbine output. This, he noted, would enhance the plant’s overall efficiency and further reduce generation costs.

Finally, the Acting CEO reassured Ghanaians that all procurement decisions are being made with the best interests of the nation in mind. He emphasized the importance of working closely with both local and international partners to secure the most competitive pricing for the capital parts and services needed for the continued operation and expansion of the power plant. No contracts have been signed yet for these parts, and consultations with all relevant state institutions will take place to ensure value for money and proper oversight.

The rejoinder from the Acting CEO aims to restore confidence in the VRA’s leadership and underscore its commitment to enhancing the country’s energy infrastructure. As Ghana continues to face growing energy demands, these critical upgrades to the Takoradi Thermal Power Station (KTPS) are positioned as key to maintaining reliable power generation for both domestic use and industrial growth.

Read full statement of Acting VRA CEO Ing. Edward Ekow Obeng-Kenzo’s response to $52m T1LEP allegations & strategic plans for power plant improvements

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