Power barges deadline could be missed

The running-mate for the opposition New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has expressed reservations about government’s promise to deliver two 450 megawatt emergency power barges from Turkey by April to address the current power crisis.

According to him, the barges will not meet next month’s deadline as negotiations between the two partners have not been finalised.

He said resolving the current energy crisis is critical to economic growth -- however, government’s approach to delivery of emergency power from Turkey does not reflect the seriousness of the power situation.

“As I speak, my understanding is that the Turkish power barges had not left Turkey as at last week, and so the promise that they would be here to deliver power in April is not likely to be met,” he said.

He further added: “The IMF will not tell you how to resolve dumsor; it will not tell you to sign a 10-year emergency power deal to address a two-year problem. The IMF cannot do this for us, we must do it ourselves,” Dr. Bawumia stressed.

He said the current power predicament confronting the entire nation is more of a financial problem than a technical one.

Dr. Bawumia, a former Deputy-Governor of Bank of Ghana (BoG), made this declaration when he delivered a lecture at the second Distinguished Speakers Series at the Central University College at Miotso-Dowhenya in the Greater Accra Region.

Dr. Bawumia, a visiting professor in Economics and Governance at the College, spoke on the theme “IMF bailout, will the anchor hold?” which sought to scrutinise Ghana’s chances as it seeks a bailout from the International Monetary Fund (IMF).

Turkey is to provide two barges each generating 450 megawatts to bridge Ghana’s deficit to about 1,000 megawatts.

The 10-year emergency power agreement deal with Turkish Karpower Company is to supply power at 19 cents per kilowatt.

Dr. Bawumia argued the reason behind the current power crisis in the country is the inability of Nigeria Gas Company to supply Ghana with the needed gas as a result of government’s inability to clear a debt of about US$100million it owes Nigeria.

The situation has made it difficult for Nigeria to supply gas to Ghana as it used to, saying: “The untold story of the erratic gas supply from Nigeria is that Ghana owes US$100million to Nigeria: therefore its dragging its feet with regard to supplying Ghana with gas while this amount is unpaid”.

Government is also highly indebted to energy sector players including the Volta River Authority (VRA) and Electricity Company of Ghana (ECG).

He further said government owes the Volta River Authority (VRA) an amount of GH¢Ibillion, which has compromised the balance sheets of VRA and made it difficult to import crude oil for the generation of power.

This has caused the VRA to over-use the Akosombo Dam 30 % more than recommended since 2012, and thereby caused a drop in the dam’s water level.

Another revelation is that government owes the Electricity Company of Ghana (ECG) GH¢700million.