Ghana's Energy Crisis : Minority blames government's dubious contracts

Accra, Ghana - The Minority in Parliament has expressed concern over the resurgence of load shedding, popularly known as 'dumsor,' attributing it to questionable contracts signed by the government through the Ghana Gas Company.

Ranking Member on the Energy Committee of Parliament, John Jinapor, revealed that a power deficit of over 500 megawatts was recorded on September 24, negatively impacting customers.

At the center of the controversy is an $800 million contract between the Ghana Gas Company and the Phoenix Park Gas Processors Consortium. The Minority alleges that this contract was signed under pressure from the Presidency without parliamentary approval, raising concerns about transparency and accountability.

According to Jinapor, the dubious contracts have led to significant financial burdens, including $1.2 billion owed to Tullow Ghana for gas supplied to Ghana Gas. This debt has prompted threats from Tullow Ghana to curtail supply.

Furthermore, Independent Power Producers (IPPs) are considering halting power supply due to unpaid debts.

Jinapor emphasized the urgency of the situation, stressing that Parliament must thoroughly investigate these contracts to prevent further complications in the energy sector

“Because of such dubious contracts, as we speak, there is load shedding ongoing. GRIDCo has been cautioned not to inform customers. On [September 24], there was a deficit of more than 500 megawatts. On [September 25], they are going to shed a load and customers in Ghana will be affected'' he stated.

“Tullow Ghana has not been paid even $1 for the past nine months for gas supplied to Ghana Gas and Tullow is threatening to curtail supply of gas.''

“The IPPs have just dispatched a letter to the Minister of Finance intending to halt the supply of power for debt and liabilities hovering around $1.2 billion. Sadly, the energy sector is collapsing,'' he added.

Source: Lead News Online