Ghana exports power by 2012

GHANA IS to become a net exporter of oil and power to its neighbouring countries by the year 2012.

The sector requires about $9 billion in the next five years to financing projects in order to meet this objective, and the Minister of Energy, Dr Joe Oteng Adjei said yesterday that “government will inject funds into the sector, when available”.

Meanwhile, a major policy shift has been taken and agencies operating under the sector have been directed to raise a substantial portion of their capital investment requirements without recourse to government.  

Briefing journalists at the first meet-the-press to be held by the new government, he said the agencies including the Volta River Authority (VRA), Ghana Grid Company GRIDCO), Electricity Company of Ghana (ECG) and Tema Oil Refinery, have been advised to raise financing from commercial loans and other private sector financing arrangements.

“Indeed, the Ghana Stock Exchange could be another source of raising funds for the sector agencies.”

He said there are plans to eliminate the Tema Oil Refinery (TOR) debt.  The total debt as at December 2001 stood at ¢395 trillion. So far the TOR debt recovery levy incorporated in oil prices has generated over GH¢70 million and “will be used to defray part of the debt” with government taking care of the rest.    

On the challenges facing the sector, the minister said infrastructure for the production and supply of adequate petroleum and energy services need to be developed to meet the nation's domestic requirement and for export.

There is also the need to develop the requisite infrastructure to ensure efficient use and reliable supply of energy services as well as ensuring that energy is produced and supplied in a form that has no adverse health and environmental impact.

Currently the installed operational power generation capacity in the country stands at 1,810 megawatts with the Akosombo hydro power plant generating 1020 megawatts, Kpone, 160 megawatts; 550 megawatts from the Takoradi Thermal Power Complex and 80 megawatts from the Mines Reserve Plant.

To ensure universal access to electricity by 2020, which is expected to enhance growth, prosperity and development, government has secured over US$169 million under the Ghana Energy Development and Access Project to improve distribution.

An additional $350 million loan facility has been secured from the US Exim Bank for the extension of electricity to over 1,000 rural communities throughout the country.

He stated that the discovery of oil in the shores of the country has so far attracted 11 petroleum companies who have signed agreements with government and are operating at different stages of exploration or development.

“Government intends to accelerate the process of acquisition of blocks in the Ghana sedimentary basin in order to fully and speedily delineate the country's oil and gas potential,” Dr Oteng Adjei said.

Government, he said, also intends to invest about $300 million in TOR to increase local refining to meet both domestic demand and export. When this is done TOR will increase its capacity by 100,000 barrels per day from its current level of 45, 000 which represents about 60 percent of domestic demand.

By Emelia Ennin Abbey & Esther Awuah