[ad_1]
<! –
->
<! –
->
Kwadwo Poku, an energy expert, has called on the government to cancel some power purchase agreements to reduce financial debts.
African Center for Energy Policy (ACEP) Wednesday, urged the government to streamline the electricity sector by eliminating some of the excess energy generated by independent power producers (IPPs).
According to ACEP, this can only be achieved when the government cancels some contracts boldly and pays the corresponding penalties.
Speak on PM Express Kwadwo Poku said Thursday that although this measure may temporarily increase the debt of the energy sector, it will release the country of debt in the long run seemingly insurmountable.
"In the long run, some companies will end up paying them $ 1 billion. But now, if you let them go, you will pay a penalty and that penalty you can pay now, when the present value of that cost is better in the long run. Because, basically, they erase your accounts and you do not have to accumulate them in the long run.
"But the situation in Ghana in which we find ourselves is that at the moment we have no money, we owe these PPIs not even the means to buy money to pay. their bills, "he said.
Photo (above): Kwadwo Poku is an energy expert
The problem, however, was that the government needed to be able to find the money needed to pay off the IPP debt and pay the corresponding penalties.
Last year, the government embarked on a rationalization of the sector, ending some power purchase agreements and saving some $ 7 billion in the state.
Related: The Politics of Power: The Government Saved $ 7 Billion on Termination of APA Contracts?
At the same time, Albert Touna Mama, director of the International Monetary Fund (IMF) for Ghana, warned the government that the economy could soon sink into crises if the current debt problems of the sector of Energy are not solved.
According to the IMF boss, the government can remove many of the sector's PPIs because of the financial challenges facing the economy.
Dr. Albert Touna Mama made the remark at a stakeholder roundtable on the theme: "Addressing Ghana's Political Budget Cycle: Lessons for Ghana Beyond the IMF".
Watch the full episode of the PM Express Business Edition on Thursday. The discussion focused on the challenges of the energy sector.
[ad_2]
Source link
