{"id":321957,"date":"2017-05-23T18:30:32","date_gmt":"2017-05-23T18:30:32","guid":{"rendered":"http:\/\/citifmonline.com\/?p=321957"},"modified":"2017-05-23T18:30:32","modified_gmt":"2017-05-23T18:30:32","slug":"we-need-power-to-turn-economy-around-agyarko","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/05\/we-need-power-to-turn-economy-around-agyarko\/","title":{"rendered":"We need power to turn economy around – Agyarko"},"content":{"rendered":"
The Minister for Energy, Boakye Agyarko has underscored the need for the sustainable management of the state power company to forestall a total collapse.<\/p>\n
He was speaking at the first Bidders’ Conference on the concession for the Private Sector Participation (PSP) in the electricity distribution business of the Electricity Company of Ghana (ECG).<\/p>\n
[contextly_sidebar id=”0L5cLASKd6KZEAHOIhOaQ3lt6WgVFXW3″]The Bidders\u2019 Conference is to facilitate interaction between the shortlisted applicants for the ECG Concession and potential local and international investors.<\/p>\n
He reminded the power sector remained central to the development agenda of the government and “key to unlocking the development potential of Ghana.”<\/p>\n
But the Energy Minister lamented that \u201cyears of inadequate investment, inefficiencies within the utility, and a large stock of outstanding receivables, particularly in the distribution sector, have all conspired to weaken the organisations in the sector to what they are today. As a nation, we should set our sights firmly on turning around the fortunes of this strategic sector which so many of us have poured our sweat into building.\u201d<\/p>\n
Highlighting the negative impacts of the power crisis, Mr. Agyarko noted that the power crisis, per the 2013 World Bank Energising Economic Growth in Ghana report, the 2006-07\u00a0power crisis cost Ghana nearly 1 percent in lost GDP.<\/p>\n
Also, the Institute of Statistical, Social and Economic Research (ISSER), in its 2014 study on the economy indicated that Ghana lost production worth $2.1 million per day during the crisis.<\/p>\n
Mr. Agyarko further noted the impact of the power crisis on unemployment figures.<\/p>\n
“For the government, even more critical is the resulting loss of jobs that was precipitated by the unreliable power to business. Recognising this fact, President Nana Akufo-Addo, during the 2017 State of the Nation Address, warned that if left unaddressed, the challenges in the energy sector would collapse the Ghanaian economy.\u201d<\/p>\n
About the ECG PSP Transaction<\/strong><\/p>\n The Government of Ghana signed the Ghana Power Compact with the Millennium Challenge Corporation (MCC), an independent United States government foreign aid agency, on August 5, 2014.<\/p>\n The Ghana Power Compact provides Ghana a grant of US$498,200,000 to improve the performance of Ghana\u2019s power sector to unlock the country\u2019s economic potential, create jobs, and reduce poverty.<\/p>\n The Government of Ghana is committing at least US$37.4 million of its own money.<\/p>\n