Member of Parliament for Ayawaso East, Mohammed Baba Jamal Ahmed, has commended the government for ongoing reforms in the energy sector, saying successful negotiations with Independent Power Producers (IPPs) have reduced Ghana’s legacy power sector debt while strengthening the country’s long-term electricity supply.
Contributing to debate on the report of Parliament’s Select Committee on Energy on the renegotiated Gas Capacity Services Agreements (GCSAs) involving CEN Power and Aksa Energy, the lawmaker said the government’s engagement with IPPs, supported by technical consultants, had achieved a 15 per cent reduction in debt obligations.
He described the outcome as a significant fiscal gain and praised the Ministry of Finance for its role in the negotiations.
According to Hon. Baba Jamal, the renewed engagement with IPPs provides greater assurance of uninterrupted electricity supply while easing the financial burden associated with legacy power purchase agreements.
The MP also applauded government for developing measures to prevent the recurrence of the debts that have weighed heavily on the energy sector over the years.
He attributed much of the historical debt accumulation to the depreciation of the cedi, explaining that most power sector agreements were denominated in US dollars, causing liabilities to rise whenever the local currency weakened.
Hon. Baba Jamal said the recent stability of the cedi has helped contain debt growth, improve government’s ability to meet its obligations under existing power agreements and reduce the risk of future debt accumulation.
He argued that the combination of prudent fiscal management, currency stability and renegotiated energy contracts would strengthen the sustainability of Ghana’s power sector and help ensure reliable electricity supply.
The Ayawaso East MP therefore urged Parliament to approve the amended and restated Gas Capacity Services Agreements for CEN Power and Aksa Energy, emphasising that the agreements form part of broader efforts to restore financial discipline to the energy sector while safeguarding the country’s energy security.
He described the reforms as a major step towards resolving long-standing challenges in Ghana’s power sector.
By: Christian Kpesese
