Lawyer Tsatsu Tsikata highlights World Bank’s mistakes in Ghana’s energy sector

Lawyer Tsatsu Tsikata, the former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), has shed light on the mistakes made by the World Bank in Ghana’s energy sector during the 1980s and 90s.

Mr. Tsikata explained that during that period, when there were discussions on the use of gas to support hydropower, the World Bank strongly opposed the idea. However, gas has now become a major component of Ghana’s energy sector.

His comments came in response to the views expressed by the World Bank Country Director, Pierre Laporte, who stated that the Power Purchase Agreements (PPAs) negotiated under the Mahama administration were poorly executed.

Laporte called for an urgent review of what he described as “wrong and expensive” agreements.

Speaking to the media recently, Laporte remarked, “In the case of Ghana, the contracts signed with the PPA are too expensive. The type of PPA signed means that Ghana is paying for electricity that is not being used due to the doubling of capacity. In the last few years, Ghana entered into some wrong PPAs at the wrong rates and prices, and today the country is bearing the financial burden of these erroneous agreements.”

However, during an interview on the Ghana Tonight Show on TV3, Tsatsu Tsikata, who is also a private legal practitioner, responded to Laporte’s comments.

He stated, “I find it interesting that the World Bank is taking a leading role in this discussion. When I reflect on the gas and power sectors, in which this issue has arisen, the World Bank has made some serious mistakes in understanding our national energy situation.”

Tsikata went on to explain that in the 80s and early 90s, when GNPC advocated for the importance of gas as a complementary power source to hydro sources, the World Bank was opposed to the idea of additional capacity from gas sources.

“I raise this issue because fuel costs are a significant part of the problems we face in the power sector, and some of these costs can be traced back to the use of light crude oil,” Tsikata added.

Tsikata’s remarks highlight the complexities and challenges faced in Ghana’s energy sector and the need for careful evaluation and planning in the development of power generation infrastructure and agreements.

SOURCE: Coverghana.com.gh