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General News of Tuesday, 27 August 2019


Government, IPPs join forces to resolve ‘take-or-pay’ contracts

Finance Minister, Ken Ofori-Atta Finance Minister, Ken Ofori-Atta

The government of Ghana has begun collaborative consultations with independent power producers to resolve the take-or-pay obligations crippling Ghana’s energy sector.

The three-month engagement directed by the ministers of Energy and Finance, will involve direct discussions with each of Ghana’s IPPs and gas suppliers, among others.

At a meeting with some stakeholders in Accra on Monday, 26 August 2019, the Minister of Finance, Mr Ken Ofori-Atta, reminded the participants that a stable and growing economy was in the interest of businesses and investors.

The collaborative consultation process, which has been welcomed by the international investor community, is expected to “provide a forum for stakeholders to contribute to the government’s energy strategy”, Mr Ofori-Atta noted.

The minister emphasised the importance of the sector as well as its private sector operators and investors to Ghana’s energy future.

“Fundamental to achieving a sustainable future and industrialisation is the all-important goal in having reliable and affordable power.

“This is how important your investment is to us, and that is why it is crucial for all of us to get this right, together”, he told the gathering.

Mr Ofori-Atta added that: “Moving Ghana beyond aid means the government is committed to achieving security of electricity supply and sustainable generating capacity that offers reliable and affordable power for the Ghanaian people and businesses, while providing investors with attractive opportunities.”

The meeting comes a month after Mr Ofori-Atta told parliament during his presentation of the Mid-Year Budget Review that the government will do away with all take-or-pay contracts in the energy sector.

Meanwhile, the government says it will release more details about the collaborative consultation process in the coming days.