Ghana Rewards Community Efforts To Reduce Carbon Emissions

Ghana ­­has become the third country in Africa to sign a landmark agreement with the World Bank that rewards community efforts to reduce carbon emissions from deforestation and forest degradation.

Other countries that have signed the agreement include Mozambique and the Democratic Republic of Congo.

Ghana’s five-year Emission Reductions Payment Agreement (ERPA) with the Forest Carbon Partnership Facility (FCPF) Carbon Fund, which is administered by the World Bank, unlocks performance-based payments of up to $50 million for carbon emission reductions from the forest and land use sectors. 

In Ghana, forest degradation and deforestation are driven primarily by cocoa farm expansion, coupled with logging and a recent increase in illegal mining.

Working in close partnership with the Forestry Commission, Cocoa Board, and private sector, Ghana’s programme with the FCPF Carbon Fund seeks to reduce carbon emissions through the promotion of climate-smart cocoa production.

“The programme’s  two central goals – reducing carbon emissions in the forestry sector and producing truly sustainable, climate-smart cocoa beans – make it unique in Africa and the first of its kind in the cocoa and forest sectors worldwide,” Kwadwo Owusu Afriyie, Chief Executive of Ghana’s Forestry Commission said.

“This programme is helping to secure the future of Ghana’s forests while enhancing income and livelihood opportunities for farmers and forest-dependent communities,” Afriyie added.

In Ghana’s ERPA, the FCPF Carbon Fund commits to making initial results-based payments for reductions of 10 million tons of CO2 emissions (up to $50 million).

Ghana’s ERPA also specifies on carbon emission baselines, price per ton of avoided CO2 emissions, and a benefit-sharing mechanism that has been prepared based on extensive consultations with local stakeholders and civil society organisations throughout the country.

“It’s exciting to see the level of stakeholder engagement Ghana has been able to achieve with its emission reduction programme, particularly with the private sector. Some of the most important cocoa and chocolate companies in the world, including World Cocoa Foundation members such as Mondelēz International, Olam, Touton and others, as well as Ghana’s Cocoa Board have committed to participating in the programme,” says Pierre Frank Laporte, the World Bank country director for Ghana.

 Source: Esi-Africa.com

Revealed: Generation Shortfall Causing Recent Power Outages In Ghana

It has emerged that deficit in power generation is the cause of recent power outages being experienced in some parts of Ghana. Some residents in Ghana especially those in the capital, have been witnessing regular power cuts and have been wondering what could be the cause of the current situation. However, credible information available to energynewsafrica.com indicates that most of the generation plants are producing below capacity because of non-availability of fuel to keep the power plants running. The West African country has installed capacity of about 4750 MW, but currently peak demand is about 2,700 MW. Regrettably, available figures show a generation deficit of more than 600 megawatts, forcing distributors to ration power in parts of Accra where demand is the highest. Karpower, which has a capacity of 450 MW, is producing 16MW, Aksa, with a capacity of 360 MW, is producing 45MW and AMERI, with a capacity of 250MW, is currently producing 195.32MW . The Akosombo Hydro Dam is also said to be running just two of its six turbines at 500MW, about half its total capacity of 1020MW. The Bui Hydro Dam is also currently producing 3.2MW out of its 400MW capacity. It will be recalled that six Independent Power Producers (IPPs) issued threats that they would be compelled to shut down their plants within seven days, if huge sums of monies owed them by PDS and ECG were not paid. In a statement, the IPPs said the lack of funds was making it difficult for them to procure fuel to keep their plants running. Sources within the IPPs have confirmed the shortfall in power generation to energynewsafrica.com. Our checks indicate that GNPC, which issues guarantee that allows Litasco to procure fuel for onward supply to Karpower, has been unable to do so this time around because GNPC does not have the funds to provide the guarantee.  

Saudi Aramco To Splash $18 Billion On Marjan, Berri Offshore Fields

Saudi oil giant Saudi Aramco has said it has awarded $18 billion worth of contracts for the engineering, procurement, and construction to boost production from the Marjan and Berri offshore fields. Saudi Aramco said that fifty percent of the contracts “are being awarded to Saudi Arabian companies, increasing the share of locally sourced materials.” The $18 billion amount is spread across 34 contracts, however, Saudi Aramco did not provide the identity of the contractors winning the contracts in its statement issued on Tuesday. The company shared a photo with a press release which showed the names of Saipem, Subsea 7, Hyundai, McDermott, and others in the background. More on the specific awards is expected to be known in the coming days. Overall, Saudi Aramco plans to boost production capacity by 550,000 barrels per day of Arabian Crude Oil and 2.5 BSCFD of gas from Marjan and Berri offshore oilfields. “These two programs will significantly enhance Saudi Aramco’s oil production and gas processing capabilities, both strengthening our position as the leading integrated energy supplier and meeting growing long-term demand for petroleum,” said Amin H. Nasser, president and CEO of Saudi Aramco. “These investments will support our continued focus on employing best-in-class technologies, well completion, and reservoir management practices. It will enable Saudi Aramco to further reduce the carbon intensity of our crude oils, supporting our strategy of reducing emissions while providing energy to those who need it.” According to Saudi Aramco, more than 90 companies and institutions were invited to bid on the packages, and 16 Saudi and international companies were chosen in the fields of engineering, supply and construction. The projects are expected to create thousands of direct and indirect jobs, supporting Saudi Aramco’s efforts to localize and create new job opportunities, Saudi Aramco said. The Marjan program is an integrated development project for oil, associated gas, non-associated gas and cap gas from the Marjan offshore field. This development program includes a new offshore gas oil separation plant, and 24 offshore oil, gas and water injection platforms. Saudi Aramco also plans to expand its Tanajib onshore oil facilities and construct a new gas plant, to include gas treatment and processing, NGL recovery and fractionation, and gas compression facilities. A cogeneration facility will be developed, in addition to a water desalination facility and new transfer pipelines. The offshore oilfield development project aims to increase the Marjan Field production by 300 MBCD of Arabian Medium Crude Oil, process 2.5 BSCFD of gas, and produce an additional 360 MBCD of C2+NGL. Berri plan As for the Berri program, Saudi Aramco plans to add 250,000 barrels of Arabian Light Crude per day from the offshore oilfield. The planned facilities will, upon completion, include a new gas oil separation plant in Abu Ali Island to process 500,000 barrels of Arabian Light Crude Oil per day, and additional gas processing facilities at the Khursaniyah gas plant to process 40,000 barrels of associated hydrocarbon condensate. The program includes a new water injection facility, two drilling islands, 11 oil and water offshore platforms and 9 onshore oil production and water supply drill sites, Saudi Aramco said.   Source: offshoreenergytoday.com   

Ghana Energy Summit Opens In Accra (Photos)

The Deputy Minister of Energy in-charge of Power in the Republic of Ghana, Hon. William Owuraku Aidoo on Tuesday opened the 2nd Ghana Energy Summit at the plush Kempinski Hotel in Accra, Capital of Ghana. The Summit, which is under the theme: “Harnessing opportunities in Ghana’s Energy Sector-Making Local Participation A Practical Reality” brought together industry players. Below are some of the exclusive photos captured by energynewsafrica.com’s reporter, who covered the event.        

National Energy Services Reunited Corp. Announces Multiple Contract Awards In Bahrain

The National Energy Services Reunited Corp, a national, industry-leading provider of integrated energy services in the Middle East and North Africa and Asia Pacific regions, has announced multiple awards of contracts for well intervention services by Tatweer Petroleum-Bahrain Field Development Company W.L.L. “We are pleased to see NESR expanding and we look forward to their successful activities in the Kingdom of Bahrain,” Mr. James Kenneth Eastlack, CEO of Tatweer Petroleum said in a statement copied to energynewsafrica.com. ”We are pleased to establish a strong presence in the Kingdom of Bahrain which we will be achieved with solid investment, as well as recruiting and developing the talented national workforce,” he added. “NESR is steadfast in its commitment to be a partner and key enabler in the Kingdom of Bahrain’s extensive upstream growth plans,” Sherif Foda, Chairman of the Board and CEO of NESR, indicated. “The E&P Industry has a long history in Bahrain as this is where the first well was drilled in the region, and with the new discovery in Khalij Al-Bahrain Basin, the E&P industry in Bahrain is poised to take a big leap forward under the guidance of H.E. Shaikh Mohammad bin Khalif Al Khalifa, Minister of Oil.” Mr. Foda added: “As has been aptly stated by H.E. Minister of Oil, this high-quality tight oil and gas reservoir will require a newer approach and will need higher intensity and more complex services. This in turn provides opportunities to enterprising service providers like NESR who can bring all the required technology and best practices to help economically access these reservoirs.  “I would also like to take this opportunity to thank Tatweer Petroleum and H.E. Shaikh Mohammed bin Khalifa Al Khalifa, Minister of Oil, for their trust in NESR and allowing us to contribute towards the nation’s Economic Vision 2030.”    

South Africa To Discuss New Power Supply Deal With Zimbabwe

The Zimbabwean Energy and Power Development Minister, Fortune Chasi, will soon lead a delegation to South Africa to finalize a new power supply deal to ease electricity woes in the country. Since May, Zimbabwe has been facing challenges with power generation from the Kariba dam due to falling water levels. As such, the country has had to boost imports from South Africa, which have been curtailed due to unreliable payment.  To this end, over the weekend, Zimbabwe’s President, Emmerson Mnangagwa, engaged in talks with his South African counterpart, President Cyril Ramaphosa, to find solutions to the country’s power problems.Mnangagwa said: “With President Ramaphosa we met and we were sharing challenges we are facing and, in particular, energy shortages. We exchanged views on how we can deal with that issue. Of course, our ZESA owes Eskom quite a lot of money and they have been able to pay $10 million last week to reduce that debt. “This enables them to have discussions and I think our Minister of Energy [Fortune Chasi] will go to South Africa … to discuss some new arrangements.”   Source: Esi-Africa.com  

Cyprus Cries Foul As Turkey Deploys Second Drillship

Turkey’s second drillship has in the past few days entered the contested waters offshore Cyprus and is, according to reports, preparing to start drilling. The government of Cyprus has condemned the move, accusing Turkey of violating Cyprus’ sovereign rights. The Yavuz drillship, owned by Turkish national oil company TPAO is currently located in waters to the east of Cyprus, around 11 nautical miles (~20 km) to the closest mainland point. Turkey has previously dismissed Cyprus’ and EU’s calls to show restraint when it comes to drilling in the contested waters, claiming its drillships were to drill in areas where the Turkish Republic of Northern Cyprus had granted licenses to TPAO in 2011. Turkish Republic of Northern Cyprus is a self-declared state run by Turkish Cypriots and recognized only by Turkey. While Cyprus is accusing TNRC and Turkey of violating its sovereign rights, TNRC and Turkey have accused Cyprus of unilaterally conducting oil and gas explorations without taking into considerations interests of the Turkish Cypriots, with Turkey saying it “would continue to protect the continental shelf rights of the Turkish Cypriots.” According to Turkish media reports, the Yavuz is expected to start drilling within days. Responding to the Yavuz drillship deployment this, the government of Cyprus on Monday said:” The Government of the Republic of Cyprus strongly condemns Turkey’s new attempt, close to the Karpasia peninsula, within the Territorial Sea of the Republic.” The Cypriot government said: “This second planned drilling, within two months from the commencement of the ongoing illegal drilling operations in the western part of Cyprus’ EEZ, constitutes an escalation of Turkey’s continued violations of the sovereign rights of the Republic of Cyprus under the UN Convention on the Law of the Sea as well as customary International Law and constitutes a serious violation of the sovereignty of the Republic of Cyprus.” The drilling operations off the west coast the government is referring to is being carried out by TPAO’s Fatih drillship, some 72.2 kilometers off the Cyprus west coast. “Turkey continues to blatantly violate international law, both conventional as well as customary, flagrantly disregarding the European Union’s and the international community’s calls to cease its illegal activities and respect the sovereign rights of the Republic of Cyprus to explore and exploit its natural resources within its maritime zones. Instead of engaging in dialogue, as the international community calls her to do, Turkey deliberately avoids doing so, in order to create new fait accomplis,” official Cyprus said. Turkey has previously said its actions in the Eastern Mediterranean region were based on its legitimate rights stemming from international law. “As we previously stressed on many occasions, having the longest coastal line in the region, we will protect our own rights and interests within our continental shelf, as well as those of the Turkish Cypriots around the Cyprus Island,” Turkey’s Ministry of Foreign Affairs said in May.Cyprus’ government addressed these claims in a statement on Monday too. It said: “It is indeed paradoxical that, while Turkey does not recognize the Republic of Cyprus, a member state of the United Nations and the European Union, that has concluded international agreements with its neighbors, it attempts to invoke international law claiming at the same time to act upon the “licensing” of an illegal occupying regime. It is underlined, herewith, that drilling operations that are purportedly conducted on behalf of “TRNC” are illegal and null and void, as it is also the case for the secessionist entity in the occupied part of Cyprus, as provided for in the relevant resolutions of the UN Security Council [541 (1983) and 550 (1984)].” “Ankara ought to realize that the only way to deal with the problems she herself creates, is through an intensive and decisive dialogue that will lead us to a solution on the basis of the relevant UN Resolutions and the principles upon which the European Union is founded. A solution that will, amongst others, address the challenges we currently face as a result of the unacceptable military occupation by Turkey.” “The Republic of Cyprus is determined to continue to defend its legal rights to the benefit of all its legal citizens, intensifying its efforts at a legal, political and diplomatic level, using all means at its disposal, especially in the framework of the European Union. To this effect, we recall the decisions of the Council of the European Union, and in particular the Conclusions of the European Council of 20th June 2019, condemning Turkey’s illegal actions in the Eastern Mediterranean and underlining the direct and serious impact that these actions have on the whole spectrum of the EU-Turkey relations, and to which the Union will respond with appropriate measures,” the government of Cyprus said.   Source: Offshoreenergytoday.com      

What Next For Government As Dumsor Clock Ticks?

In 1984, Ghana was confronted with its first electricity crisis as a result of a severe drought of the lake, very much attributable to climate between 1982 and 1984. It was reported that the total inflow into the dam between 1982 and 1984 was less than 15% of the expected total, and that triggered power rationing and a reduction of electricity supply to neighboring countries, including Togo and Benin. Yet another prolonged power outages emerged in 1998, largely as a result of low rainfalls and inflows to the Volta Lake. Even though the demand for electricity had falling slightly from 5110 GWh in 1991 to 4965 GWh by 1998, the electricity supply deficit was significant enough to introduce the second round of power rationing.  Beyond these two power crisis which was largely blamed on act of God, the country had to experience several periods of inadequate power supply, including the 2006 to 2007, and 2012 to 2016 power outages. The uniqueness of the 2012 to 2016 power crisis was the longest period the Ghanaian had to endure, with rotating Load Shedding timetable, which earned the name “Dumsor”. Up until the 2012 to 2016 power crisis, the major contributing factor to the persistent, irregular, and unpredictable electric power outage had largely been power generation shortfalls. But today, the narratives have changed tremendously.  Today, Ghana can boast of over 4,750 (megawatts) MW of installed generation capacity from largely hydro-electric and thermal sources. Net dependable capacity exceeds 4,320 MW, and the current Peak Demand rarely exceeds 2,700 MW. The country is also significantly endowed with natural gas to fuel the power plants which are largely dual-fuel-fired. And the Volta Lake is currently at a decent level of over 79 meters (79.754m at January 4th 2019) compared to the prior year level of 76 meters (76.557m at January 4th 2018). In spite of these favourable conditions which are seen as recipe for aggressive and rapid industrialization, the country is still grappling with unreliable power supply. Since November 2018 till now, the country has been experiencing a recurring power outages. The problems attributed to the recent inconsistent electricity supply are technical, commercial, regulatory, structural, planning, funding, political, and procurement related. However, the most predominant challenge to the provision of reliable electricity supply is the poor financial status of the power utilities which impacts on the ability to procure the required quantity of fuel for power plants in a timely manner, carry out maintenance services to ensure the availability of the required plant capacities, maintain and expand transmission and distribution infrastructure to ensure system efficiency et cetera. It is the operating revenues, in the form of tariffs and service charges collected by the power utilities, and capital injection from the state as the sole shareholder of the state owned enterprises (SOEs) in the power sector that yields liquidity for the entire value chain (generation, transmission, and distribution).  However, the financial performance of the state owned utilities have been abysmal in recent times. At the end of 2018, all SOEs in the power sector reported losses, a clear sign of weak sector performance. The deteriorating financials of these entities makes it difficult for them to operate efficiently, and to guarantee reliable and consistent supply of electricity. Finance Committee Warns A report by the Finance Committee of Ghana’s Parliament that was discussed in early July 2019, warned that liquidity challenge in the power sector may spur the return of Dumsor.  According to the legislative committee, Ghana’s energy sector is currently overburdened with growing indebtedness as it battles with a debt portfolio of over US$4billion. In the report it is captured that State Owned Enterprises in the energy sector like Ghana Grid Company (GRIDCo), Power Distribution Services (ECG/PDS) and the Northern Distribution Company (NEDCo) have for the past two and half years all posted a revenue loss of GH¢118million, GH¢2billion and GH¢163.7million respectively. And that the situation is worsened by the government’s indebtedness to Karpower Plant to the tune of US$150million, ENI US$160million, NEDCo US$162million, Independent Power Producers (IPPs) US$1billion, GRIDCO US$171million and Ghana Gas Company US$735billion. According to the report, the total amount accrued from levies collection for 2018, fell short by 9.2 percent over the projected figure of GH¢3.507 billion due to the significant (65.5 percent) fall in the targeted Price Stabilization and Recovery Levy (PSRL) amount, as well as the fall in the targeted amount set for the Public Lighting Levy (PLL) and National Electrification and Scheme Levy (NESL) by 45.76 percent and 43.69 percent respectively. However, the report concluded that the Energy Debt Recovery Levy (EDRL), Road Fund Levy (RFL), and Energy Fund Levy (EFL) all outperformed their targets by 7.9 percent, 0.72 percent and 7.29 percent respectively, at the end of 2018 based on account of 11.79 percent increase in petroleum products consumption volumes in 2018 compared with the same period in 2017.  The falls were attributed to the reduction in electricity tariffs, change in consumer attitude towards energy conservation, gradual shift towards the consumption of renewable energy such as solar and the lower than estimated recovery of electricity bills.  ESLA Accounts, according to the report, recorded a closing balance of GH¢615,417,858 at the end of 2018. During the period, a total amount of GH¢1,353.71million was transferred to ESLA Plc from ESLA Accounts. This amount, the report observed, excluded GH¢16.33million transferred in December, 2018 and received by ESLA in 2019. And that out of a total amount of GH¢1,353,706,144.00 received by ESLA Plc, an amount of GH¢1,104,334,498.02 was used to pay two coupons held by ESLA Bond holders in May and November, 2018. The balance of GH¢326,697,267.78 was transferred into a LOCKBOX Account.  According to the report, even though an amount of GH¢5,453.20 million out of the total proceeds realized from ESLA Plc Bond was applied to redeem part of the legacy debt of the Energy Sector, substantial portions of the debt still remain on the books of the State Owned Enterprises which continue to accumulate new debts. IPP’s Threatens  Barely a week after the Finance Committee of Ghana’s Parliament warned that there could be Dumsor due to liquidity challenge in the power sector, six Independent Power Producers (IPPs) which currently supply about 1,500 MW of electricity have threatened to shut down their power plants if Power Distribution Services (PDS) Limited fails to settle debts amounting to over US$700 million within eight working days. The companies includes, Sunon-Asogli Power (Ghana) Limited, BXC Solar Ghana, Cenit Energy Limited, Cenpower Generation Company Limited and Karpowership Ghana Company Limited – are members of the Chamber of Independent Power Producers and Bulk Consumers (CIPDIB). Even though these IPPs acknowledge the negative impact a shutdown of power plants will have, they claim they are left with no choice since they cannot continue to be saddled with huge debts, while they struggle to pay creditors, suppliers, and employees’ salaries. According to the IPPs, as at the time the Electricity Company of Ghana (ECG) was taken over by PDS, they were owed over US$400 million. However the debt has shot to over US$700 million since the PDS took over, suggesting that the PDS has accumulated additional debt of over US$300 million, without a dime paid. In a statement, the Chief Executive Officer (CEO) of CIPDIB, Mr Elikplim Kwabla Apetorgbor, urged the government, through the Ministry of Energy, to compel PDS to clear the accumulated invoices presented by the IPPs within eight working days, and pay interest on all overdue invoices which the IPPs could have profitably utilized. He charged the Millennium Development Authority (MiDA) to compel PDS to adhere to best business practices and respect the terms of the PPAs and ensure the nation derives the optimum benefit from the concession arrangement. Mr Apetorgbor stated that following a successful concession, IPPs expected PDS to honour and abide by the terms of the Power Purchase Agreements (PPAs) inherited, particularly by avoiding the delay in paying for power purchases, with respect to the bargained credit days. He regretted that PDS appears to be reliving some of the very bad contractual and business practices that characterized the operations of ECG. He explained that energy can neither be stored nor destroyed, which presupposes that consumers are paying for the power consumed while PDS is accumulating the revenues. Clock Ticks, What Next? While the clock ticks, one is left to see how government would reacts to the threat issued by the IPPs to first, forestall any blackout. It may also be in government’s own interest to investigate the circumstances that might have led to this unfortunate situation, and institute measures to avert the immediate consequences, for it definitely comes as a surprise to Ghanaians that since the takeover of ECG by the PDS four months ago, not a dime have been remitted to the IPPs. May be, it is about time to take a cue from the Finance Committee of Parliament’s report which discloses that the growing debt portfolio in the energy sector is largely due to the non-adherence to the Energy Sector Levies Act, 2015 (Act 899) as amended in 2017 (Act 946). Written by Paa Kwasi Anamua Sakyi, for the Institute for Energy Security (IES)  The writer has over 22 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst in the global energy sector. He serves as a resource to many global energy research firms, including Argus Media.  

Ghana: We Don’t Have Agreement With You, So Go To ECG For Your Monies Instead Not Us -PDS Directs Cash-Trapped IPPs

The Power Distribution Service (PDS) Ghana Limited has denied claims by the Independent Power Producers (IPPs) that the service owes them huge sums of money for power supplied. According to PDS, it does not have any contractual agreement with IPPs, as far as power purchase issue is concerned and, therefore, expressed surprise over their claims. The response from PDS follows threats by the Chamber of Independent Power Producers and Bulk consumers (CIPDIB) that they will plunge Ghana into darkness if some $600m debt owed its members is not paid in eight days. Chief Executive of CIPDIB, Eliplim Kwabla Apetorgbor, said the decision to cut power supply to PDS has been necessitated by debts they have incurred in running their operations. These operations, he said, include fueling and maintaining their plants and paying workers. Eliplim Apetorgbor said the six IPPs had a ‘wonderful marriage’ with the Electricity Company of Ghana until PDS took over the work of ECG. ECG was paying IPPs every week from earning made from consumers, butt that stopped when PDS took over in March 2019. Attempt to retrieve these debts have been met with resistance from PDS. They have also failed to respond to their demand letters or invitations to a meeting to discuss outstanding payments. The way out, Mr. Apetorgbor threatened, is to stop supplying their 1,500 megawatts of power to PDS, which constitutes more than 50 per cent of what is required to meet the demands of consumers. However, speaking on Accra-based Oman FM, William Boateng, who is the Head of Communications at PDS, said his outfit rather has a contract with Electricity Company of Ghana, which is currently bulk power trader, adding that PDS has not reneged on it. “We have honoured all our concessional obligations to ECG. ECG gives us bulk bills and we pay every week,” he pointed out. Background It will be recalled that Manila Electric Company (Meralco) officially took over running of ECG from March 1st this year, under a 20-year concession agreement.  The negotiated Transaction Agreements – namely the Lease and Assignment Agreement, Bulk Supply Agreement, and Government Support Agreement – to secure the proposed Private Sector Participation (PSP) in ECG were approved by Cabinet and ratified by Parliament. The Concessionaire, according to the agreement, is expected to inject an amount of $580m into the distribution system during the agreement period’s first five years. The Bulk Supply Agreement between ECG and the Concessionaire deals with the Concessionaire’s back-to-back purchase of the capacity and energy made available to ECG under the Power Purchase Agreements (PPAs).      

Exploring Pilot Independent Power Transmission Lines

Africa’s power sector leaders must devise new mechanisms to attract more private sector investment into power transmission lines, energy experts agreed at a technical roundtable last week. The meeting, hosted by the African Development Bank to mark the 3rd Africa Energy Market Place (AEMP), explored how to structure private sector financing to meet the investment needs of transmission lines. It also covered the investment priorities of transmission companies, alternative funding options, and bankable transaction structures. Chairing the discussions, Batchi Baldeh, Director for Power Systems Development at the Bank noted that private investments in transmission networks under Public Private Partnership arrangements, will be critical to complement Government budgets and ensure timely delivery of cost-effective power to consumers. Annual investments required for 2015-2040 to expand the transmission networks are estimated at $3.2 billion to $4.3 billion. “The private sector is key to closing this finance gap. Private finance has supported the expansion of electricity transmission infrastructure in many regions of the world and the same can happen in Africa,” Baldeh said. Participants included energy stakeholders from the African Development Bank, World Bank, USAID’s Power Africa, Commonwealth Development Corporation’s Gridworks, private developers and public utilities. They discussed how mechanisms that have worked elsewhere could be replicated in sub-Saharan Africa, especially the need for strong government support and credit enhancement. “We know how to structure, finance, build, operate IPPs. We have also seen Independent Power Transmission models succeed in Africa (e.g. Mozambique Transmission Company, MOTRACO),” said Angela Nalikka, the bank’s manager for national and regional power systems. Nalikka said the meeting helped participants to explore the possibility of implementing pilot independent power transmission lines and understand the structuring and financing prerequisites.    

Danger: Nationwide Blackout Looms In Ghana In Few Days Over Growing Energy Sector Debts

Ghanaians are likely to experience a nationwide blackout in the next couple of days, if the huge debts owed members of the Chamber of Independent Power Producers and Bulk Consumers (CIPDIB) in the West African country are not settled. According to CIPDIB, their members will be compelled to shut down all their plants within one week, if the Power Distribution Services (PDS) fails to pay huge debts owed the Independent Power Producers (IPPs). In a statement issued and signed by the Chief Executive Officer of CIPDIB, Elikplim Kwabla Apetorgbor, it urged the government, through the Ministry of Energy, to compel PDS to expressly pay all accumulated invoices to the IPPs within the next seven days. The statement further urged the government not to only make PDS pay its debts to the IPPs but also be made to pay interest on all overdue invoices, which the IPPs could have profitably utilized. It also called on the Millennium Development Authority (MiDA) to compel PDS to adhere to best business practices and respect the terms of the PPAs and ensure that the nation derives the optimum benefit from the concession arrangement. Elikplim Kwabla Apetorgbor, CEO of CIPDIB “Should PDS fail to respect the terms of the PPA and make payment to the IPPs within the 7-8 working days period, our members would be left with no choice than to shut down PDS’s plants as they could not continue to be saddled with huge debts,” CIPDIB warned. PDS took over some operations and management of Electricity Company of Ghana (ECG) from March 1, 2019, with the expectation to deliver a quality service to power consumers to its host, ECG. Below is the full statement: CHAMBER OF INDEPENDENT POWER PRODUCERS, DISTRIBUTORS AND BULK CONSUMERS, GHANA (CIPDIB) DANGER! ENERGY CRISES LOOM OVER GROWING POWER SECTOR DEBT! 
  1. It would be recalled that the operations of the Electricity Company of Ghana  (ECG] came under a barrage of criticisms because of perceived inefficiencies which included but not limited to the huge indebtedness to power generators particularly the Independent Power Producers [IPPs].
2. Against this backdrop and the need to revamp the ECG, there were efforts by successive governments to improve the management of this all-important institution to drive the industrialization agenda of the country. 
  1. This effort eventually culminated in the takeover of some operations and management of ECG from March 1, 2019, by the Power Distributions Services [PDS].
4. Being a private sector led, the PDS, was expected to deliver more quality service than its host- ECG.
  1. This implies that various stakeholders in the power sector have high-performance expectations from PDS. The consumers, for instance, expect a reliable, affordable and sustainable power supply.
6. For IPPs, the expectation was that the PDS will honour and abide by the terms of the Power Purchase Agreements (PPAs) inherited particularly by avoiding the delay in paying for power purchases with respect to the bargained credit days.
  1. Regrettably, however, the PDS appears to be reliving some of the very bad contractual and bad business practices that characterized its host -ECG.
8. Energy can neither be stored nor destroyed. This presupposes that consumers are paying for the power consumed and PDS is accumulating the revenues. It is very frustrating to note that PDS, for the past four (4) months, since taking over from March 1, 2019, to date, has not remit any payment to the IPPs yet!
  1. In the midst of this issue, one would have expected PDS to engage the players in a bid to inform them of any challenges, if there is, but efforts so far made to cause PDS to honour its contractual bargains has yielded virtually no result.
10. Meanwhile, the huge financial indebtedness of PDS towards the IPPs implies that the IPPs are saddled with huge debts to their creditors and suppliers and also challenged in paying employees’ salaries. 11. At the moment, most of the IPPs are stressed up and finding it extremely difficult to manage their operations and management costs. Some have to depend on overdrafts to be able to pay salaries and others.
  1. For love of country and its people, some IPPs had gone a step further to incur an extra financial cost in borrowing to procure fuel to ensure reliable power supply.
13.Constrained by these existential threats, the Chamber of Independent Power Producers and Bulk Consumers [CIPDIB], is by this release alerting the consuming public of looming power outages unless PDS fulfils its financial obligations to the IPPs within a 7-day period.
  1. CIPDIB is urging the government through the Ministry of Energy to cause PDS to expressly release funds to pay all accumulated invoices to the IPPs within seven days.
15. CIPDIB further wants to urge the government to not only make PDS pay its debts to the IPPs; but that PDS must also be made to pay interest on all overdue invoices which the IPPs could have profitably utilized. 16. We call on MiDA to compel PDS to do things to ensure best business practices and respect the terms of the PPAs and ensure the nation derive the optimum benefit from the concession arrangement.
  1. We caution that should PDS fail to respect the terms of the PPA and make payment to the IPPs within the 7-day period; our members will be left with no choice than to shut down their plants as they cannot continue to be saddled with huge debts. This action although has huge implications for jobs – cannot be avoided.
18. We reiterate the need to depoliticize the power sector and discourage undue political interferences from the sector and allow the sector to be operated as a pure business.
  1. Finally, CIPDIB is urging all participants in the power sector to ensure transparency in our dealings as it is key to the growth and sustainability of the sector.
  Thank you.   Signed   Elikplim Kwabla Apetorgbor Chief Executive Officer, CIPDIB.            

Ghana: Driver, Mate Set Fuel Tanker Ablaze After Selling 54,000-Litre Diesel

Police in the Republic of Ghana have arrested a tanker driver and his mate for setting ablaze a diesel tanker in a bush near Osino in the Eastern Region after they had emptied and sold its 54,000-litre diesel load. The tanker, with GH¢280,260 worth of diesel from Fuel Trade in Tema, was headed for Yendi in the Northern Region but was diverted and its content sold in Accra, after which the suspects drove the empty tanker to Osino, where they set it ablaze. The suspects are Awudu Yakubu, 34, the driver, and Isaac Boadi, 19.  An accomplice, Fataw Mohammed, a former driver employed by the truck owner and said to be the mastermind of the deal, is, however, on the run and the police have mounted an intensive search for his arrest. The Deputy Director General of the Criminal Investigations Department (CID) of the Ghana Police Service, Assistant Commissioner of Police (ACP) Mr George Tweneboah, who disclosed this to the Daily Graphic, said the complainant in the case was an Accra businessman and transporter who dealt in petroleum products. He said some time last year the complainant gave his DAF CF 460 truck, with registration number GS 264 14, to Awudu to drive and also engaged Boadi as his mate. ACP Tweneboah said the two suspects had since been loading petroleum products to supply to a number of customers in different parts of the country. He said on June 24, 2019, the accused persons were loaded with 54,000 litres of diesel, valued at GH¢280,260, at Fuel Trade in Tema to supply to a customer in Yendi. He said they left Tema in the night and met the complainant at the Community 18 Junction on the Accra-Tema Motorway, where he gave them GH¢2,400 as their per diem to Yendi and back. Sale of fuel He said police investigations revealed that the suspects set off on the journey to Yendi, but on reaching the Accra end of the motorway, they claimed to have run short of fuel and so Yakubu parked the vehicle on the shoulders of the road and the mate was sent to buy fuel. While Yakubu was waiting for the mate, Mohammed, the complainant’s other driver, went to meet Yakubu and they hatched a plan to sell the fuel and burn the tanker. The three suspects took the fuel back to Tema, where they sold it to one Nana Yaw, and after their nefarious act, they drove the empty tanker to the Unity Oil Filling Station at Achimota and bought 75 litres of petrol which they put into gallons, put them in the truck and set off on the journey with the empty tanker. On their way, ACP Tweneboah said, they drove to a spot between Osino and Anyinam in the Eastern Region, where they feigned an accident, depicting that the tanker had landed in a ditch because it was being driven at top speed.  Truck set ablaze He said the suspects poured the petrol that they had bought at Achimota on the head of the tanker and set it ablaze, after which Yakubu called the complainant’s secretary and told him that while they were on their way to Yendi, the truck had been involved in an accident. The secretary then informed the complainant who, thinking that the driver and his mate had sustained injuries, quickly dispatched the secretary to attend to the two while he followed up later. On reaching the scene of the supposed accident, the secretary detected that the tanker was empty. By then the driver was nowhere to be found but the mate was sitting near the bushes by the burnt truck. When the mate was asked about the whereabouts of the driver, he said the driver had asked him to wait while he rushed to Kumasi and back, the police said. Plan uncovered When the mate was asked to narrate what had led to the accident, he could not speak, but when probed further, he broke down and confessed that they had hatched a plan with Mohammed to sell the fuel and burn the tanker. The owner of the truck then picked the mate from Osino to Accra, where he lodged a complaint at the CID Headquarters and handed the mate over to the police for further investigations. Investigations by the police led to Yakubu’s arrest from his hideout in Kumasi and brought to Accra where, upon interrogation, he confessed to the crime and mentioned Mohammed as the mastermind of the whole plan. The Head of the Intelligence Unit of the CID, Superintendent Ebenezer Nketsiah , advised tanker owners and businessmen to endeavour to do proper background checks on all prospective employees before engaging them. Source: Graphic.com.gh

Iran Threatens British Shipping In Retaliation For Tanker Seizure

An Iranian Revolutionary Guards commander has threatened to seize a British ship in retaliation for the capture of an Iranian supertanker by Royal Marines in Gibraltar. “If Britain does not release the Iranian oil tanker, it is the authorities’ duty to seize a British oil tanker,” Mohsen Rezai said on Twitter. The Gibraltar government said the crew on board the supertanker Grace 1 were being interviewed as witnesses, not criminal suspects, in an effort to establish the nature of the cargo and its ultimate destination. U.S. President Donald Trump, while not specifically mentioning the supertanker incident, repeated a warning to Tehran: “We’ll see what happens with Iran. Iran has to be very, very careful,” he told reporters at the White House. British Royal Marines boarded the ship off the coast of the British territory on Thursday and seized it over accusations it was breaking sanctions by taking oil to Syria. They landed a helicopter on the moving vessel in pitch darkness. The move escalates a confrontation between Iran and the West just weeks after the United States called off air strikes on Iran minutes before impact, and draws Washington’s close ally into a crisis in which European powers had striven to appear neutral. A U.S. State Department spokeswoman said, “We welcome international partners’ resolve in upholding and enforcing these sanctions.” Tehran summoned the British ambassador on Thursday to voice “its very strong objection to the illegal and unacceptable seizure” of its ship, a move that also eliminated doubt about the ownership of the vessel.  Foreign Ministry spokesman Abbas Mousavi said the crude oil cargo was from Iran. The ship’s paperwork had said the oil was from neighboring Iraq, but tracking data reviewed by Reuters suggested it had loaded at an Iranian port. European countries have walked a thin line since last year when the United States ignored their pleas and pulled out of a pact between Iran and world powers that gave Tehran access to global trade in return for curbs on its nuclear program. Over the past two months, Washington has sharply tightened sanctions against Tehran with the aim of halting its oil exports altogether. The moves have largely driven Iran from mainstream markets and forced it to find unconventional ways to sell crude. The confrontation has taken on a military dimension in recent weeks, with Washington accusing Iran of attacking ships in the Gulf and Iran shooting down a U.S. drone. Trump ordered, then canceled, retaliatory strikes. With nuclear diplomacy at the heart of the crisis, Iran announced this week it had amassed more fissile material than allowed under its deal, and said it would purify uranium to a higher degree than permitted from July 7. The Grace 1 was impounded in the British territory on the southern tip of Spain after sailing the long way around Africa from the Middle East to the mouth of the Mediterranean, a route that demonstrates the unusual steps Iran appears to be taking to try to keep some exports flowing. The Gibraltar spokesman said the 28-member crew, who have remained on board the supertanker, were mainly Indians with some Pakistanis and Ukrainians. Police and customs officials remained on board the vessel to carry out their investigation, but the Royal Marines were no longer present. While the European Union has not followed the United States in imposing broad sanctions against Iran, it has had measures in place since 2011 that prohibit sales of oil to Syria. Gibraltar said on Friday it had obtained an order extending the detention of the supertanker by 14 days because there were grounds to believe it was breaking sanctions by taking crude oil to Syria. Shipping experts say it may have been avoiding the more direct route through the Suez Canal, where a big tanker would typically be required to unload part of its cargo into a pipeline to cross, potentially exposing it to seizure. Olivier Dorgans, an economic sanctions expert at Hughes Hubbard & Reed law firm in Paris, said the British move appeared intended to send a warning to the Iranians that if they pushed on with their nuclear breaches, European countries would act: “This was done for political effect. The British are warning the Iranians.” Source: Reuters     

Ghana: Smuggled Petroleum Products Intercepted At Volta Region

Personnel of Ghana’s Immigration Service (GIS) at Akanu in the Volta region have impounded a caravan loaded with about 150 gallons of diesel, suspected to have been stolen from Libya and transported via the high seas to some parts of West Africa. The products in the blue Ford caravan with registration number AS 4077 U was believed to be from Nigeria. Akanu Sector Commander, Chief Superintendent Attoprah Godson told Accra based Starr FM, the vehicle carrying the products was intercepted around 4:30 am of Saturday 6 July by a three-member patrol team between Zukpe and Gali Dzafe within the Ketu North District of the region. Sources say the products upon arrival in Togo were smuggled into Ghana through unapproved routes, avoiding security checkpoints and joined the main urban road before the arrest. The leader of the three-member team, Inspector Samuel Ampofo said the team spotted the vehicle being led by a man on a motorcycle but both the driver and the motor rider fled when they sensed the presence of the team. Inspector Ampofo said smuggling of fuel into Ghana through Togo is common. “It has stopped for some time now so it’s unfortunate that it is now rising.” Illegally imported petroleum products are priced lower for consumers, selling at Ghc3.80 pesewas per litre against the national price which is about Ghc5.50pesewas The Volta Regional Commander of the GIS, Peter Cleaver Nantuo Esq who led a team of reporters to Akanu after the interception said, he had an intelligence that “a petroleum product, especially from Togolese side, was coming into the country so I alerted all my men to intensify patrol especially on unapproved routes, low and behold this is one outcome of the positive efforts of my men.” He said GIS is ready to combat any illegal activities that will drain the country of its security and economic developments and called on border residents to “count on them and deliver such information to us, we will not sell them out because if Ghana is good it is good for us all.” He called for enhanced collaboration among Ghana’s security agencies across the country to help sustain the country’s economy and security. He said the Service will do the necessary works and will later hand over the car and the product to the Customs Division. Akanu Sector is the second largest entry point to Ghana after Aflao in the Volta region, it stretches from Afegame to Pillar 15 within the Ketu North District with a total number of 165 officers and 25 patrolmen.  Source: Starrfm.com.gh