Tag Archives: Xatse Derick Emmanuel

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, Topstory

Cedi depreciation contributing to high fuel prices – Xatse Derick

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A Research and Policy analyst at the Institute of Energy Security (IES), Xatse Derick Emmanuel has attributed to the recent fuel price hikes to the depreciation of the Ghana Cedi against major trading currencies.

Although he appreciates that the commodity price on the world market has gone up substantially, the analyst believes the prices of petrol and diesel would not have gone up that much this week which happens to be the second pricing window for April 2024.

He also noted that the international market changes resulting from geopolitical tensions in the Middle East, OPEC+ decisions on production cuts also could also be blamed on the hike in crude oil prices which influences refined product price.

Some Oil Marketing Companies have increased prices of petroleum products at the pumps in line with the two-week review period on Tuesday, April 16, 2024. Market Leader, GOIL is selling a litre of petrol at ₵14.99p and diesel is going for ₵14.80p.

In an interview with Oheneba Boamah Bennie on Power Kasiebo on TV XYZ  on Tuesday, Xatse Derick referred to the world market price that had seen a significant rice as one of the causes of the increase of the prices of petroleum products in Ghana.

The Global Standard & Poor (S&P) Platts monitoring of refined petroleum products announced the closing price for the first pricing-window for April 2024. Petrol went for $937.68, diesel $841.38, and LPG $517.38, per metric tonne respectively.

The new price movement reflected a net effect of 7.27% and 0.69% increment in the price per metric tonne for petrol and diesel respectively.

On the other hand, LPG price fell by a whopping 17.52%. It was the second time the product price has recorded such a change.

Xatse explained that if the cedi had not depreciated recently, the price of petroleum products would not have seen such a hike in prices.
“The cedi over the period depreciated about 3 per cent and that also contributed to the price increment to that level. Had the currency been stabilised, the increment would not have been felt that much,” Xatse stated in Akan.

He also mentioned that the reversal of the price stabilisation levy as a component of the price build-up for refined petroleum products by the National Petroleum Authority (NPA) was also a contributory factor for the high prices of fuel in the country.

He hoped the NPA could consider a policy on that levy to cushion Ghanaians as hardship bites hard.

Meanwhile, the IES has predicted that fuel prices could soar in few days.

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.

 

Source: Myxyzonline.com