Light Up Ghana initiative to power 24-hour economy — Mahama
The next National Democratic Congress (NDC) government will launch the "Light Up Ghana" project to revitalise the country's street lighting system, to support the proposed 24-hour economic policy.
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The flag bearer of the NDC, John Dramani Mahama, stated that the initiative would revive the universal street lighting programme to ensure that the country's streets were well-lit to facilitate night-time economic activities and provide enhanced security for citizens.
“Other key interventions would include the implementation of a time-of-use policy to provide affordable and stable electric power for businesses to operate around the clock,” Mr Mahama said.
The former President was addressing players in the country’s energy sector at an Energy Sector Forum in Accra last Friday, where he reiterated the party’s plans to rescue the energy sector, which, he warned, was teetering on the brink of collapse.
Crisis
Mr Mahama pointed to inefficiencies, mounting debt, and inadequate infrastructure as major issues threatening the stability of the sector. He emphasised the urgent need for comprehensive reforms to avert a potential crisis.
He revealed that despite the New Patriotic Party (NPP) government inheriting over GH¢40 billion in ESLA revenues and $7.4 billion in oil revenues, the sector was heavily burdened by debt, with Independent Power Producers (IPPs) owed $2 billion.
“The energy sector is choking on debt. ECG's financial losses have ballooned, and the sector is on the brink of collapse. The IPPs are owed about $2 billion, which has put the power sector in jeopardy. Natural gas supplies are in huge arrears, with several more outstanding debts, crippling cash flow in the sector," he said.
The NDC flag bearer accused the NPP government of undermining investor confidence in the energy sector through a series of opaque deals.
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Those deals, he said, had created uncertainty and instability and slowed down the growth of the sector.
“Crude oil production has dropped by over 30 per cent and regulatory failures such as the ENI unitisation dispute have damaged our international reputation as an oil and gas nation," he said.
Mr Mahama noted that despite the NPP inheriting substantial oil revenues when it took office, it had mismanaged the sector with actions that had discouraged potential investors, further weakening the energy sector’s potential.
“Corruption scandals like the sale of contaminated fuel and the lease of TOR to Torentco in opaque circumstances have further eroded investor confidence in the sector,” he said, adding that most of the major oil companies were abandoning Ghana and were relocating to our neighbour, Côte d’Ivoire.
Assurance
The flag bearer further assured the gathering that the NDC had a comprehensive strategy to restore and transform the energy sector.
“I'm glad to inform you that following a serious series of consultations we have had with many of you, the next NDC government has developed a well-thought-out plan and a comprehensive strategy to restore and transform Ghana's energy sector,” he said.
For starters, he said the NDC would promptly resolve all disputes between upstream oil and gas players and the government.
“At its core, the principle of governance is about solving real problems that impact our people. It demands confidence in ideas, but also the humility to take responsibility and engage with diverse groups and individuals, harnessing their insights and experience to craft and implement effective policies,” he said.
Also, the flag bearer said, under his watch, his government would reduce technical and commercial losses in the energy system by partnering local entrepreneurs to enhance efficiency and reliability.
“We will systematically match generation with forecasted demand and address reserve requirements.
“Another would be to transparently manage the ESLA revenues and strictly adhere to the principles of the cash waterfall mechanism, significantly reduce technical distribution and commercial losses in the energy sector, in partnership with local entrepreneurs to make budgetary provision for payment of power consumed by government agencies and ensure prompt release of that revenue,” Mr Mahama added.