An energy analyst Xatse Derick Emmanuel has chastised the Akufo-Addo government for securing a new loan for Ghana’s energy sector.
Xatse, an Economist, Research and Policy Analyst for the Institute for Energy Security (IES) said the energy sector will be heavily bedevilled with debt if the government does not resort to pragmatic measures to fixing the mess of the power sector crisis.
His comment comes as Ghana has signed a $260 million Energy Sector Recovery Programme facility with the World Bank to boost.
Finance Minister Dr Mohammed Amin Adam believes the facility will help boost the sector’s recovery and financial stability.
But Xatse argues that the move is not progressive because the government “missed out on a $190 million grant from the US Millennium Challenge Corporation due to mismanagement and corruption issues surrounding Power Distribution Services (PDS).”
In a statement, the energy analyst said the grant from the US Millennium Challenge Corporation could have bolstered the sustainability of the country’s infrastructure and provided critical support for the financial recovery of the energy sector.
“This decision not only over burdens the country with more debt but also highlights the government insatiable desire for loans over grants—ultimately leaving future generations to shoulder the cost,” Xatse noted.
Below is the statement:
WHY SECURE LOAN INSTEAD OF GRANT OPPORTUNITY FOR THE SAME PURPOSE
It’s deeply concerning that Ghana missed out on a $190 million grant from the US Millennium Challenge Corporation due to mismanagement and corruption issues surrounding Power Distribution Services (PDS). This grant could have bolstered the sustainability of our infrastructure and provided critical support for the financial recovery of the energy sector. Yet, rather than exploring alternative ways to secure this funding, the government has now turned to a $250 million World Bank loan for the same purpose.
Despite this loss, the government did not seek alternative methods to secure the grant. Now, the finance minister is happy to secure $250 million loan from the World Bank, earmarked for the same purpose—ensuring the energy sector’s sustainability and viability.
What’s alarming is the finance ministers joy over securing a loan to replace what was once a grant and Ghana to be paying $10 million dollars for consultancy fee for the loan secured.
This decision not only over burdens the country with more debt but also highlights the government insatiable desire for loans over grants—ultimately leaving future generations to shoulder the cost.
Ghana as a country have therefore prioritize a loan of $250 million from world bank over a possible $190 million grant facility from Millennium Challenge Corporation (MCC)
Xatse Derick Emmanuel
Economist, Research and Policy Analyst
Institute for Energy Security – IES
Source: Myxyzonline.com
