Power sector reform on course - Ohene-Kena

Accra (Greater Accra) 21 April 

Mr Fred Ohene-Kena, Minister of Mines and Energy, on Tuesday reiterated government's commitment to the power sector reforms, saying, its implementation is on course. In line with this commitment, the government has come out with a power sector development policy, which sets out the nature, scope and timing of the reforms. It would be implemented over three years, beginning this year.

At a press briefing in Accra, Mr Ohene-Kena said the main thrust of the reform is to transform Ghana into a middle-income country within one generation and ensure that Ghanaians have universal access to electricity. It is also to sustain the transition to an open and liberal market economy, shifting from the hitherto, state administration of the sector, to private investment, which will in turn support the development of human resources and basic infrastructure.

The policy, covers policy framework, power sector reform and setting of priorities over the three-year period, Mr Ohene-Kena said. The on-going structural and regulatory reforms and the proposed divestiture of state-owned utilities are part of efforts to promote private participation in the development of infrastructure and services.

It will ensure that the existing state-owned entities transform themselves, through public-private partnerships and joint ventures, into commercially viable Ghanaian power utilities and in turn, assume leadership role in the development of the proposed West Africa Power Pool.

"This is to ensure that electricity supply is made more reliable, economically efficient and equitable so as to effectively support the socio-economic development of the country". Besides, it would enable the sector attract investment from Ghanaians and foreign institutional investors, and also from other private capital sources, including the Ghana Stock Exchange. He, however, said the reform suffered a jolt during the power crisis that hit the country between December 1997 and the last quarter of 1998 but an emergency power supply expansion plan had to be formulated to contain it within a short time frame.

As part of the reform, government has since last year created certain agencies to monitor and advise it on activities of players in the sector. They include the Public Utilities Regulatory Commission, to regulate the setting of tariffs for, and enforcement of customer service obligations of all public utilities, and the Energy Commission which advises on strategies and policies towards efficient and safe supply of electricity.

Some Independent Power Producers have also been licensed to build, operate and transmit power. They include Aggreko Plc and Cummins Power Generation Plc of United Kingdom and KMR Power and Marathon Power, both of US.

Mr Ohene-Kena said Parliament would have to pass legislation in future to set up other relevant agencies that will play a key role in the reforms. It is the government's hope to create awareness on the reform policy details, which would be available in the local media and on the Internet, to enable the public participate fully in its progress.