We did not provide guarantees to IPPs - World Bank

The World Bank says it has not provided any financing or guarantees to the Independent Power Producers (IPPs) that signed Power Purchase Agreements with Ghana or the Electricity Company of Ghana during the energy crisis in 2014-2016.

In a statement issued by the Bank to clarify media reports that it provided guarantee to the IPPs during the power crisis era, the World Bank said to secure Ghana’s energy future, the Bank supported the Energy Sector Recovery Plan (ESRP) of Ghana for affordable and reliable electricity supply and enhance the accountability in the energy sector.

The ESRP mandates the rationalisation of gas and power purchase costs in line with the demand and approves the procurement of energy supply and service contracts in a competitive manner.

The Bank said the implementation of this policy was necessary to ensure that new power generation capacity was procured competitively and transparently based on the most cost-effective basis.

The statement said this was to prevent a recurrence of over-supply of generation capacity in future.

“The World Bank Group provided financing and a guarantee to the Sankofa Gas Project, which since 2019 has increased the availability of natural gas for power generation by leveraging private capital investment and promoting a cleaner energy mix,” the Bank said.

The World Bank indicated that it was committed to supporting Ghana in its efforts to sustain economic growth, accelerate poverty reduction, and enhance shared prosperity in a sustainable manner.