Ghana: Energy Sector Needs Emergency Plan -World Bank

The World Bank has warned Ghana that the country’s power situation will worsen if the government fails to tackle it within the shortest possible time.

The Bank wants Ghana to put together an emergency action plan to immediately tackle the energy sector problems to prevent escalation.

World Bank’s Managing Director for Operations, Anna Bjerde, who made the call at a press conference in Accra, the capital of Ghana, noted that although Ghana’s energy challenges are not unique, they require urgent attention.

According to her, failure to address the issues promptly would exacerbate the situation and impose greater financial burdens on the state, diverting resources from other crucial areas.

“The problems that Ghana is experiencing are not unique to Ghana, but they are very serious because if they are not addressed, they will get worse and worse. If not arrested and addressed with really an emergency action plan, it will get worse and it will cost the state more to keep the energy sector running at a time when they need to spend money on other things.

“The World Bank is providing, first of all, technical advice on what needs to be done, so the metering, the billing, the collection and making sure that you have an account set up so from which all the different flows of the revenues collected flows to where it needs to go so that those who are generating the electricity are paid,” she said.

The West African nation’s energy sector is saddled with huge debts and it is making it difficult for the sector to operate efficiently.

Recently, Independent Power Generators threatened to suspend operations by July 1,2023, as a result of $1.7 billion owed them by the Electricity Company of Ghana (ECG).

The ECG’s last-minute commitment which is less than the 30 per cent demand by the IPPs saved the situation.

Apart from the monies owed the IPPs, the West Africa Pipeline Company (WAPCo) was also owed US$13 million for the transportation of gas from Atuabo and, they too, threatened to suspend gas transportation until GNPC and ECG mobilised to pay US$6 million out of the total figure.

The development has forced ECG to undertake a series of revenue mobilisation exercises across its operational areas to recover monies owed by its customers.

Source: https://energynewsafrica.com