GHANAIAN GOVT SAVES 300 MLN USD BY REVIEWING EXISTING POWER PURCHASE AGREEMENTS

ACCRA, Ghanaian Vice President Mahamudu Bawumia says the government has been able to save 300 million US dollars by reviewing and re-prioritising its existing Power Purchase Agreements which involved the cancellation of about 20 of such agreements, while four had been asked to continue and the rest would be delayed by two to four years, thus reducing the government's liability.

Disclosing this at a Town Hall meeting in Accra Monday, he said the government had secured funding for two power projects and had adopted a power purchase policy which would ensure that any party wanting to undertake power production in Ghana would not charge more than 10 cent per kilowatt/hour of electricity.

Noting that Ghana was paying the highest electricity tariff in the West African sub-region, he said: "In other countries they are charging 10 cent but they are charging us 17 and 21 cents as far as I know," Dr Bawumia said.

He also said the government, in efforts to increase the efficiency of the Volta River Authority, the main power utility in the country, had taken a decision to separate the VRA's thermal operations from its hydro-electricity operations. He added that the government wanted to switch from thermal power to renewal energy.

He said the government had also taken a decision to ensure that all government buildings, including hospitals, schools and other public institutions, use solar energy to cut cost.

Referring to the government's efforts to clamp down on illegal small-scale mining, otherwise known as galamsey, he said the efforts had been boosted with the suspension of licences to small-scale miners in order to restructure the sector.

Source: NAM NEWS NETWORK

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GHANAIAN GOVT SAVES 300 MLN USD BY REVIEWING EXISTING POWER PURCHASE AGREEMENTS

ACCRA, Ghanaian Vice President Mahamudu Bawumia says the government has been able to save 300 million US dollars by reviewing and re-prioritising its existing Power Purchase Agreements which involved the cancellation of about 20 of such agreements, while four had been asked to continue and the rest would be delayed by two to four years, thus reducing the government's liability.

Disclosing this at a Town Hall meeting in Accra Monday, he said the government had secured funding for two power projects and had adopted a power purchase policy which would ensure that any party wanting to undertake power production in Ghana would not charge more than 10 cent per kilowatt/hour of electricity.

Noting that Ghana was paying the highest electricity tariff in the West African sub-region, he said: "In other countries they are charging 10 cent but they are charging us 17 and 21 cents as far as I know," Dr Bawumia said.

He also said the government, in efforts to increase the efficiency of the Volta River Authority, the main power utility in the country, had taken a decision to separate the VRA's thermal operations from its hydro-electricity operations. He added that the government wanted to switch from thermal power to renewal energy.

He said the government had also taken a decision to ensure that all government buildings, including hospitals, schools and other public institutions, use solar energy to cut cost.

Referring to the government's efforts to clamp down on illegal small-scale mining, otherwise known as galamsey, he said the efforts had been boosted with the suspension of licences to small-scale miners in order to restructure the sector.

Source: NAM NEWS NETWORK

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