[ 2017-05-08 ]

Transparent power deals to reinstate World Bank guarantees – Analyst - See more
Energy sector analysts want the government to be
firm in adopting competitive bidding processes in
power purchase agreements (PPAs) in order to
regain financial guarantee support from the World
Bank.

The Director of Research at the Institute of
Energy and Climate Change Policy, Dr. Philip Adom
warns of unfavourable developments in the energy
sector should the World Bank deny its support
entirely.

“The World Bank suspending the support does not
mean they have out rightly decided to withdraw the
support.

Probably they are observing this current
government and the reviews it conducts and how
they are going to iron out the issues,” he
observed. The Analyst further opined, “Obviously
these are monies that are coming into the energy
sector so if there should be any withdrawal,
it’s going to affect our energy sector.”

The Country Director for the World Bank for
Ghana, Liberia and Sierra Leone, Henry Kerali told
Citi Business News the Bank withdrew its
guarantees for PPAs in 2016 upon realizing that
the country had signed more than agreements
required.

At the time, the government had signed unto 12
power purchase agreements.

With the coming in of the new government,the
country is said to have signed agreements with
about 40 power producers which has led to excess
supply over demand.

The move has since raised a lot of concerns among
industry players who believe Ghana’s excess
power should have been sold out to neighbouring
countries but for the relative high cost compared
to others within the sub-region.

But Dr. Philip Adom believes Ghana could renew its
confidence should government open up the bidding
processes.

The World Bank should rescind the decision if we
are able to do our homework well and make sure
that those PPAs that we have engaged in that
actually did not give value for money, we make
sure we try to do away with such issues and ensure
that there is sanity in the system.”

Source - citibsinessnews.com

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