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Home Politics Politics 201907

Mid-Year Budget Review: Power Plant Worsening Country’s Economy...Some Agreements To Be Cancelled?

29-Jul-2019
/ Politics, Politics
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Majority Leader of Parliament, Hon. Osei Kyei Mensah Bonsu
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Majority Leader of Parliament, Hon. Osei Kyei Mensah Bonsu has given the clearest indication yet that the Mid-Year Budget Review by the Finance Minister Ken Ofori-Atta will broach the subject of revaction of the many power purchase agreements signed entered into by the erstwhile Mahama administration.

He explained that the introduction of Power Plant by former President Mahama administration as a means to resuscitate the irregular power supply popular called dumsor has become cancerous, eating deep into the country’s economy; thus the agreements need to be looked at again as it is draining the public purse.

Speaking on Okay FM’s Ade Akye Abia Morning Show, the Minister for Parliamentary Affairs insisted that due to the power purchase agreements, the country is now producing almost 4600 megawatts of power, whereas the peak demand of power in the country is around 2600 megawatts.

“One thing which is worsening the economy of the country is the introduction of power plant by the Mahama administration when there was massive irregular power supply in the country...now, we have done a lot of power purchase agreements due to discomfort the nation suffered for lack of regular power supply and so now the generating capacity of electricity and the power plant in this country is almost 4600 megawatts”, he said.

“...peak demand of electricity is 2600 megawatts and even with the 2600 megawatts, due to our inefficient in the system and the wires on the pylons and the wires to the various residences are old which we have to change... We should have changed those wires 6 to 7 years ago but we have not been able to change them because the government and ECG owe VRA; the system is messed up and so what I mean is that even with the peak demand of 2600 megawatts of power, if you look carefully into it, when we produce 2600 megawatts, about 400 to 500 megawatts of power is lost through the system and through inefficiency”, he added.

He stressed that instead of the 2600 megawatts of power needed in the country, about 2100 to 2200 megawatts of power is generated due to system inefficiency; meanwhile, the agreement is such that the country is paying for the excess as there is no need for the excess.

“What this means is that, what exactly the country needs at the peak periods, is about 2100 to 2200 megawatts of power; meanwhile, the stock capacity is 4600 and we have entered into agreement with the companies called ‘take or pay’ contract and so after producing the electricity, whether you go for it or not, you will pay for the power”, he stressed.

“This is affecting the country greatly as we are paying huge money whereas we are not using electricity. Even with the excess produced electricity, due to the fact that it is expensive, we cannot sell it to outsiders. Thermal plants in the sub-region also produce electricity and the price is cheaper than our own in Ghana and so it is affecting the economy of the country”, he reiterated.

He, however, disclosed the government is working towards a certain direction to resolve this issue; thus, the Finance Minister should address the issue of wasting money in producing an excess of megawatts of power which the country does not need.

“Do we have to cancel some of the agreements? If we cancel the agreements, what will be the consequences on the country? In the mid-year review, the finance minister has to tell us something of it”, he mentioned.

Source: Daniel Adu Darko/Peacefmonline.com/[email protected]

 

 
 

 

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