Ghana to commit $1 billion Eurobond proceeds to address energy sector challenges – Minister

Finance Minister, Ken Ofori-Atta, says one billion dollars of the country’s recently secured Eurobond money will be used to address issues in the energy sector.

This move, the Finance Minister believes, will go a long way to address key bottlenecks in the energy sector.

Speaking on Joynews’ NewsFile programme, Ken Ofori-Atta raised concerns about the need to reform the current 'take or pay' structure with the various Independent Power Producers (IPP) amongst others.

“You know we have this issue with our energy and we are In the middle of negotiating this take or pay and it is very egregious.to the country

“We came out boldly to say that we will not continue to go on with this imbalance contracts for our country anymore, he added.

Ken Ofori-Atta explained that “we have put aside one billion dollars from the Eurobond proceed to address the current take or pay structure and excess supply that undermine the energy sector.”

The rest of the Eurobond proceeds, he said, will be used to retire legacy debts as well as other developmental projects.

One of Ghana’s paramount constraints to economic growth is the unreliable and inadequate supply of electric power.

However, the country is making every effort to ensure that the electricity distribution assets are secured and properly managed, he noted.

The government recognizes that it is in the interest of its citizens, businesses and investors for the economy to continue to flourish.

Therefore, it intends to deliver a sustainable, fair and balanced energy sector for all stakeholders - domestic and international.