Ghana\u2019s energy sector is currently in a “heavily indebted” state, President Akufo-Addo has said.<\/p>\n
Addressing Parliament in his first state of the nation address, the President noted that,\u00a0the sector has enormous problems that must be addressed urgently.<\/p>\n
\u201cWe have inherited a heavily indebted energy sector with a net debt reaching $2.4bn as of December 2016. I have to point out the alarming facts that $800 million of this debt is owed to local banks which threaten their stability and that of the whole financial sector. Indeed, the huge indebtedness of the energy sector constitutes the single major hurdle to Ghanaians enjoying reliable and affordable electricity supply,\u201d Akufo-Addo said.<\/p>\n
In his address, he noted that the country\u2019s power supply had improved significantly since November 2016, however the sector\u2019s problems \u201care far from over.\u201d<\/p>\n
Akufo-Addo bemoaned the high cost of electricity in the country, which he said greatly affects businesses.<\/p>\n
\u201cThe current state of the energy situation in our country is unsatisfactory. The problems are enormous; but we must and we will confront them,\u201d he said.<\/p>\n
Stating some interventions he will introduce to address the challenges, the President said he will prioritize transparency in the sector by introducing a new tariff policy to reclassify consumer categories.<\/p>\n
\u201cWe will also reduce significantly some of the levies and taxes on the tariff. At the end of 2016, ECG had signed 43 power purchase agreements, while a further 23 were under discussion. The\u00a0Government is conducting a review of all the power agreements entered into by the previous government in order to prioritize, renegotiate, defer or cancel outright if necessary in the national interest,\u201d Akufo-Addo said.<\/p>\n
He noted that, the government was drawing a national electricity master plan to list the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo) on the stock exchange.<\/p>\n
\u2018Enforcement of procurement law\u2019<\/strong><\/p>\n The president said his government will insist on open and competitive bidding for power capacity procurement agreements.<\/p>\n \u201c…This will not only reduce the cost of power projects and ensure value for money; but also address the problem of unplanned procurement.\u201d<\/p>\n He added that, government will review the Renewable Energy Act to provide further incentives to attract the private sector to invest in the sector.<\/p>\n –<\/p>\n By: Jonas Nyabor\/citifmonline.com\/Ghana
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