Home Business World Bank Denies Allegations that it Guaranteed IPPs in “dumsor” era

World Bank Denies Allegations that it Guaranteed IPPs in “dumsor” era

by The Ghana HIT

The World Bank has distanced itself with the media reports that linked it to financing or guaranteeing the Independent Power Producers (IPPs) that signed Power Purchase Agreements with the Government of Ghana or the Electricity Company of Ghana during the energy crisis (dumsor) between 2014 and 2016. The bank has instead revealed that it offers support to Ghana’s Energy Sector Recovery Plan (ESRP) in a bid to achieve an affordable and reliable electricity supply, as well as ensuring accountability in the energy sector.

“Following recent media reports, the World Bank wishes to clarify that it has not provided any financing or guarantees to the Independent Power Producers (IPPs) that signed Power Purchase Agreements with the Government of Ghana or the Electricity Company of Ghana during the (Dumsor) energy crisis in 2014-2016.” World Bank stated.

The World Bank further argued that the implementation of the ESRP policy would be essential in ensuring that new power generation capacity is procured competitively and transparently based on the most cost-effective basis and therefore prevent the recurrence of over-supply of generation capacity in the future. It is however worth noting that the World Bank increased the availability of natural gas for power generation by providing financing and a guarantee to the Sankofa Gas Project. Their funding and guarantee resulted in the leveraging of the private capital and promoting a cleaner energy mix.

In the conclusory remarks of their statement, the World Bank indicated that they were committed to supporting Ghana in its endeavors to reduce the poverty level as well sustaining economic growth.

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