World Bank made serious mistakes in Ghana’s Energy Sector – Tsatsu Tsikata

Ex CEO of the Ghana Public Oil Company (GNPC), Mr Tsatsu Tsikata, has made sense of the mix-ups that the Word Bank made in Ghana’s energy area during the 1980s and 90s.

Mr. Tsikata showed that during those periods when contentions were being progressed for gas to be utilized to help hydropower, the World Bank was absolutely against it yet gas is by and by a significant part of the energy area.

Mr. Tsikata was responding to Mr. Pierre Laporte, the Country Director of the World Bank, who stated that the Mahama administration’s Power Purchase Agreements (PPAs) were poorly negotiated.

Mr. Laporte demanded that the “wrong and expensive” agreements be reviewed immediately.

In a recent interview with the media, he stated, “In Ghana, those contracts you signed with the PPA are too expensive.”

Ghana is responsible for paying for electricity that is not being used by doubling its capacity, according to the type of PPA you signed.

The fact of the matter is that Ghana has entered into some incorrect PPAs over the past few years. We believe these were sold at the wrong rates and prices, and you are now paying for them. What’s more, today the nation is being charged for the overwhelming majority of these wrong PPAs”, he said.

However, talking in a meeting with Alfred Ocansey on the Ghana This evening Show on TV3 Thursday, June 8, Mr. Tsikata who is likewise a confidential legitimate specialist said “I think it is fascinating that the World Bank is getting to the very front of this conversation.

“At the point when I glance back at this entire gas and power areas in which this issue is emerging, the World Bank has committed a serious errors corresponding to grasping our public energy circumstance.

“The World Bank was against having additional capacity from gas sources in the 1980s and early 1990s when GNPC, as a result of this gas mandate, was insisting that based on all the available evidence, gas was an important source to complement and supplement the power from hydro sources at the time.

“Fuel costs are a major part of the problem that we have about the power sector, and some of those fuel costs have to do with even going back to the use of light crude oil,” is the reason I am raising this issue.