Messrs. Sunon Asogli Power Ghana Limited, contractors of the 360 megawatt combine cycle power project at Kpone in the Greater Accra Region, has been exempted from paying taxes amounting to US$75.7 million.

As a result, the company will not pay import duties, import VAT, EDAIF, ECOWAS levy, National Health Insurance Levy, withholding tax liabilities, among others, on the procurement of supplies and services for the construction of the power project.

The tax exemption, which was granted by Parliament yesterday, aims to facilitate the early completion of the project.

Giving the background of the project and the need to waive taxes for smooth execution of the project, a report by Parliament’s Committee on Finance said Sunon Asogli was formed by Shenzen Energy as an independent power producing company to supplement the power generation in Ghana.

The aim of the company, according to the report, is to build, own, and operate a 560 megawatt power plant which consists of Phase 1 Project of 200 megawatt and Phase II, 360 megawatts.

“Commercial operations of the phase I began in 2011 and performed reliably and efficiently in supplementing power generation capacity of the country. By 2014, Sunon Asogli has generated about 1307 GWH with 1253 GWH on-grid, which represented about 14 per cent of the total power supply in Ghana,” it said.

The report said considering the good achievements of the Phase I and the power supply shortage in the country, Sunon Asogli resolved to start the 360 megawatts Phase II project to help improve the power situation in the country.

“To this end, Sunon Asogli entered into a Power Purchase Agreement with the Electricity Company of Ghana (ECG) to supply ECG with additional 360 megawatts of power,” it said and added that the tax waiver would facilitate smooth execution of the project.

The House also approved a request by the Finance Committee for the waiver of taxes amounting to US$26.9 million relating to project materials and equipment to be procured for the construction of roads that comprise the Eastern Corridor Road Project (Oti Damanko-Nakpanduri stretch-209km).

The project is an export credit agreement between the government and the National Bank for Economic and Social Development and the Bank of Brazil, supported by the Brazilian official equalization programme to finance, design and civil engineering works relating to the project.

In another development, the House is expected to approve the GH1.8 billion supplementary estimate presented to the House by the Finance Minister, Seth Terkper, last Monday.