BUDGET: Government to Publish Energy Policy

Government will publish a coherent Energy Policy this year to ensure continuous supply of electricity and also to guarantee that investments in the sector are timely and strategically driven. "Government recognises that the ability to achieve its socio- economic objectives will depend upon the continuous availability and usage of energy," the Minister of Finance, Mr Yaw Osafo- Maafo, said on Friday when he presented the 2001 budget to Parliament.

The Ministry of Energy was allocated 206.53 billion cedis to undertake its programmes. Out of the amount, 186.59 billion cedis will come from donors.

An amount of 199.43 billion cedis will be spent on national electrification while 3.83 billion cedis will be used to promote energy efficiency and conservation.

The minister touched on the importance of the West Africa Gas Pipeline Project to the country, saying "the availability of this relatively cheap and clean source of energy in Ghana will no doubt go a long way to reducing our crude oil import bill".

In this connection, the government will facilitate collaborative effort with participating governments of Benin, Togo and Nigeria to harmonise all fiscal, legal and environmental regimes to move the project towards its realisation before the end of 2003.

Mr Osafo-Maafo said government will support the Volta River Authority's (VRA) bid to arrange private support to provide an additional 110 megawatts of power at the Takoradi Thermal Plant Project to boost its total capacity to 660 megawatts.

To augment power generation capacity, the minister said government will proceed with the Bui Dam project.

He added that during the year 2001, due diligence, including environmental impact studies, will be completed in the year and agreements signed between the VRA and the consortium of developers to make way for the construction of the plant.

"This project, when completed by 2006, will establish a firm supply balance between thermal and hydro generation in the country."

He reiterated government's commitment to the promotion of both national and rural electrification programmes, saying that to ensure sustainability, emphasis will be on productive uses of electricity. On petroleum, the minister said arrangements are underway for the supply of crude oil and finished products to the Tema Oil Refinery.

He expressed the hope that, with full ex-refinery cost recovery and the publication of a formula to constantly adjust ex-refinery cost and ex-pump prices, a proper environment is in place for a continuous availability of petroleum products.

Mr Osafo-Maafo said the distribution arrangement for petroleum products has been reviewed and the intervention of the Bulk Oil Storage and Transport in the distribution chain removed. "The new arrangement, which requires direct relationship between the refinery and the oil marketing companies, should not only enhance efficiency but also cut down on cost."