‘Generate power from oilfields’

The World Bank has called for a rigorous plan by government to ensure that the country generates power from its oilfields.

This is because Ghana’s power challenges will not be over even when the gas starts flowing from Nigeria and the plant in the Western Region.

In a recent report, the bank said the recent gas shortage should spur government to complete work on the gas plant on time.

Without a plan to ensure full cost recovery or removal of subsidies in the sector, managers of the gas facilities would continue to register serious losses, it warned.

Ghana currently spends about $1 million on gas to power its plants, the World Bank report said.

But analysts have indicated that the country could put in place measures to take advantage of a $7 billion initiative of the United States to help sub-Saharan Africa deal with its energy crisis.

The package, announced by US President Barack Obama over the weekend, will run over five years.

Expected to double access to power in the region, countries including Ghana, Ethiopia, Kenya, Liberia, Nigeria and Tanzania will be the first to draw support from the initiative.

About two-thirds of sub-Saharan Africa lacks power, with 85 percent in rural areas. Lack of power inhibits business investment, among others.

The programme will depend on U.S government agencies to achieve its goals.

General Electric Co., a private sector entity, has already committed to power generation projects in Ghana and Tanzania while U.S. Overseas Private Investment Corp will commit as much as $1.5bn in finance and insurance.

This will help U.S. to manage the risks associated with the projects.

Likewise, the US Export-Import Bank will provide $5bn to aid US to develop power projects in the region.