Energy was a key focus of President John Mahama’s discussions with the World Bank delegation on his first day back in office. Mahama outlined a comprehensive strategy to overhaul Ghana’s energy sector, emphasizing the need for efficiency, transparency, and sustainable solutions to tackle the country’s ongoing power challenges.
Central to Mahama’s energy reform plan is privatizing the final stage of electricity distribution. Reflecting on his administration’s efforts, he explained that the Millennium Challenge Compact was designed to make Ghana the most efficient producer of electricity in Africa. Unfortunately, he noted that the current administration’s handling of the program, particularly the mishandling of the Power Distribution Services (PDS) deal, has led to setbacks.
“We need to bring in private sector expertise to improve the efficiency of the electricity distribution system,” Mahama stated, stressing that the current inefficiencies in power distribution continue to cause significant losses in revenue.
He also advocated for restoring the “cash waterfall mechanism” to stabilize the sector until comprehensive reforms can be implemented.
Another key aspect of Mahama’s energy strategy is addressing the country’s reliance on crude oil for electricity generation. He proposed increasing the use of natural gas to reduce dependence on expensive oil imports.
Additionally, Mahama highlighted the importance of resolving disputes with oil and gas producers to stimulate investment in the sector, noting that the NPP administration has failed to expand production since inheriting Ghana’s oil fields.
Mahama also stressed the importance of maintaining transparency within the energy sector and addressing the growing debts in the power value chain. John Dramani Mahama says he remains committed to working with the World Bank and other international partners to ensure that Ghana’s energy sector is not only efficient but also capable of meeting the country’s long-term needs for sustainable power generation.
By: Shadrack Odame Agyare | Metrotvonline.com | Ghana
Have a news story, press release, or opinion piece you’d like to share with our audience? We’d love to hear from you! Please reach out to us at editor@metrotvonline.com
