3News

Ghanaians are paying the price for Mahama's mess in the power sector; World Bank Director nailed it - Owusu-Bempah | 3News.com

Ghanaians are paying the price for Mahama's mess in the power sector; World Bank Director nailed it - Owusu-Bempah | 3News.com

Head of Corporate Communications at the (GNGC) Ernest Owusu-Bempah has agreed with comment by the World Bank Country Director (Ghana), Pierre Frank Laporte that spillover from the energy sector also caused problems for Ghana. 

.

This huge amount was paid for electricity that the country did not use (excess capacity) but had to be paid anyway due to the nature of power contracts signed during the era of the past government.

.

This means since 2017, Ghana has had to look for money to pay about 600MW of excess capacity that was never used.

Under ESRP, the government is renegotiating with IPPs to convert purchase agreements from Take-or-Pay to Take-and Pay to put an end to the payment of excess capacity that keeps adding to Ghana’s debt stock.

Interestingly, the country have started paying also for annual excess gas capacity charges of between $550million and $850 million every year due to another contracts that the previous government entered into with gas producers too.

9.Govt is also paying annual excess gas capacity charges b/n $550million and $850 million every year due to another contracts that the previous government entered into.

To solve the challenge, government, through the Energy Sector Reform Programme (ESRP) is renegotiating with IPPs to convert purchase agreements from Take-or-Pay to Take-and Pay to put an end to the payment of excess capacity that keeps adding to Ghana’s debt stock.

Original Story on: 3News


Scroll to Top