We have not provided IPPs financing or guarantees on PPA - World Bank

The World Bank says it has not provided any financing or guarantees to the Independent Power Producers (IPPs) to cover Power Purchase Agreements with the Government of Ghana.

It also said it had not made financing or guarantees to Independent Power Producers (IPPs) to cover Power Purchase Agreements with the Electricity Company of Ghana during the (Dumsor) energy crisis in 2014-2016.

A statement issued by the World Bank, copied to the Ghana News Agency, said to secure Ghana’s energy future, the World Bank rather supported the Energy Sector Recovery Plan (ESRP) of the Government of Ghana for affordable and reliable electricity supply and enhance the accountability in the energy sector.

It said the ESRP mandated the rationalization of gas and power purchase costs in line with the demand and approved the procurement of energy supply and service contracts in a competitive manner.

"The implementation of this policy will be essential to ensure that new power generation capacity is procured competitively and transparently based on the most cost-effective basis," it said.

"This will prevent a recurrence of over-supply of generation capacity in future."

It indicated that the World Bank Group provided financing and a guarantee to the Sankofa Gas Project, which since 2019 had increased the availability of natural gas for power generation by leveraging private capital investment and promoting a cleaner energy mix.

"The World Bank is committed to support Ghana in its efforts to sustain economic growth, accelerate poverty reduction, and enhance shared prosperity in a sustainable manner," according to the statement.