One of the first meetings held by President John Dramani Mahama after his January 7 inauguration was with the Chamber of Independent Power Producers (IPPs). The meeting provided an opportunity for the President to discuss the challenges in the power sector with industry producers.
During the discussion, he emphasized the need to revitalize the operations of the Electricity Company of Ghana (ECG) to prevent losses in downstream distribution. President Mahama assured the IPPs of his commitment to improving the sector’s efficiency to attract further investments.
He expressed concern over the mismanagement of revenue from the Energy Sector Recovery Levy (ESLA), which, instead of addressing accumulated debts, was diverted to other uses. Highlighting the broader financial challenges, he stated, “While we take responsibility for solving the problems, we must let Ghanaians know the reality. Ghana seeks $3 billion from the IMF for macroeconomic stability, yet the energy sector debt has ballooned to $2.5 billion. ECG has become the ‘sick man’ with over 40% losses.”
President Mahama further indicated his intent to revisit the stalled Millennium Challenge Account (MCA) deal, which had been disrupted by the PDS scandal, to enhance efficiency in distribution and billing systems.
