The government of Ghana and the Volta Aluminium Company (Valco), a subsidiary of Houston based Kaiser Aluminium and Chemical Corporation of the US, have signed a memorandum of understanding (MoU) to conclude a mutually acceptable arrangement that will provide a framework for a future energy purchases from the hydro electricity generated at the Akosombo dam.
Kaiser had protested the government mandated curtailment of power to the smelter in recent months, resulting in decreased production. The power curtailments are a result of low levels at Volta Lake.
Under the terms of the MoU, Ghana would work with Valco to provide power to the Valco smelter at levels and at a competitive price that would suit the two parties.
As a long-term measure, the two parties agreed that from January 2006, Ghana will allocate power to Valco on a firm basis that would not be determined exclusively by the level of water of the Volta Lake.