Tag Archives: IES

Busines, News, Topstory

IES Energy Analyst criticises Govt over World Bank loan to fix PDS’ mess

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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

Busines, News, Politics

Akufo-Addo’s claim of Solving ‘Dumsor’ Challenged by Energy Expert

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Accra, Ghana – Xatse Derick Emmanuel, a Research Analyst at the Institute for Energy Security (IES), has cast doubt on President Nana Akufo-Addo’s assertion that he has solved the perennial power crisis, popularly known as “dumsor”.

The President’s statement, made at the Workers’ Day parade on May 1, failed to acknowledge the long-standing generational deficit, which Xatse Derick argues is a crucial aspect of addressing the power supply challenges.

According to Xatse Derick, data from the Ghana GRID Company Limited (GRIDCo) System Control Center reveals a significant gap between power generation and peak demand.

In a Facebook post, the energy expert said on April 30, the generation peak at 10 pm was 3539 MW, while on May 1st, 2024, it was 3264 MW, falling short of the peak demand of approximately 3750 MW.

Xatse questions how the President can claim to have solved the power crisis when the data shows a persistent generation deficit.

He suspects that the Energy Minister, Dr Matthew Opoku Prempeh, may have misled the President on the matter.

He also warned that the Electricity Company of Ghana Limited (ECG) may be engaging in PR efforts to create a false impression of progress.

The IES Analyst’s critique highlights the need for a more nuanced understanding of the power sector’s challenges and a data-driven approach to addressing them.

The President’s claim of solving dumsor, Xatse Derick argues, contradicts the reality on the ground, and he urges a more comprehensive strategy to ensure a stable power supply.

Below is his Facebook post

The President said he has solved dumsor. However, there was no admission of the reality of generational deficit. How can you be solving a problem that doesn’t exist?. Of course, he will be misled by the Energy Minister.

Incontrovertible data from the Ghana GRID Company Limited (GRIDCo) System Control Center shows that the generation peak on May 30th at 10pm was 3539 MW. On May 1st, 2024, at 10 pm, the generation peak was 3264 MW. Remember, 10pm is the peak demand period. Meanwhile, your peak demand is about 3750 MW.

All of these, the Electricity Company of Ghana Limited ECG will be doing PR work as if they generate power or transmit power generated.

So where have you met your peak demand, let alone guaranteeing a stable power supply?

This contradicts the data on the ground. Maybe the President was misled again!

Xatse Derick Emmanuel
Institute for Energy Security – IES

 

Source: Myxyzonline. com

Busines, News

Fuel prices could hit GH¢18 for diesel, petrol in the next few weeks – IES

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The Institute for Energy Security (IES) says Ghanaians should expect to pay more for fuel in the coming days.

This is due to the increase in world market prices as well as the cedi’s depreciation.

Although crude is currently selling at $84 per barrel, there is fear that with the tension in the Middle East, the product could hit 100 dollars soon.

Speaking to JoyNews, the Executive Director of the Institute for Energy Security, Nana Amoasi VII said the development will have some implications for struggling economies like Ghana.

He predicts that pump prices could hit ¢18 for diesel and petrol in the next few weeks.

“What we see is that within the next six weeks, prices or international prices will go up and so we will be hit domestically. We also know that the cedi is not performing well against the dollar, the importing currency. That forex exposure will also hit us domestically.

“We also know that government may not be willing to reduce taxes and levies on fuel so we are not expecting any reduction in the coming six weeks. So we can project that prices of gasoline, LPG and gas oil may not drop in the next six weeks,” he said.

Touching on this, the Head of Economic Regulation at the National Petroleum Authority (NPA), Abass Ibrahim Tasunti insists the authority cannot interfere in the pricing of petroleum products.

“NPA does not regulate the prices. We don’t tell the marketers that set your price at so and so. It is influenced by these key factors; the world market price, the exchange rate and then the margin that they set. Taxes are also part of the price.

“They know very well that taxes on petrol have not been increased but the prices of petrol are going up because of the world market price. All the petroleum products come from crude oil so once the crude oil price is going up, it affects all of them.”

Meanwhile, the various transport unions are engaging the Transport Ministry on proposals to increase fares following recent adjustments in fuel prices.

Deputy Public Relations Officer with the GPRTU, Samuel Amoah says the drivers are proposing a 30 percent increment.

“In January, the leadership came up with an increment of 20 per cent of which the Ministry said we did not use the right procedure to increase the fares.

“We had a meeting and put everything on paper so the 20 per cent negotiation started in January and even by then the fuel price was not where it is now.

“The 20 per cent that we came up with, we considered the cost of spare parts, cost of lubricant, taxes, insurance and DVLA taxes. Those were the components that we used.

“Now, last Wednesday there was an increase in the prices of fuel. On Thursday there was an increase again and even today we are not looking at 20 per cent again, we are looking at around 30 per cent.

“We think if we are increasing the fares by that margin it will support us a little bit for us to keep on running our services. So we expect the Transport Ministry to come into agreement with us”.

But the Public Relations Officer of the Concerned Drivers Association, David Agboado says his side will settle for a 20 per cent increment in fares.

 

Source: Joy News