Friday, 24 May

World Bank calls for review of PPAs

Business
Mr Pierre Frank Laporte, World Bank boss

The World Bank is calling on the government to review some of the Power Purchase Agreements (PPAs) as part of the International Monetary Fund (IMF) bailout to revive the ailing economy.

According to the bank, many of the PPAs that the government signed with Independent Power Producers (IPPs) are expensive.

The Country Director of the World Bank with responsibilities over Ghana, Sierre Leone and Liberia explained that many of the country's PPAs signed for power generation are very expensive and wrong.

Mr Pierre Frank Laporte made the call for the review of PPAs on Accra-based Joy FM’s 6:00 am news on Friday, June 2, 2023.

He said the kind of PPAs Ghana signed means the country is paying more for power generation when it is not supposed to be so.

“The fact is Ghana entered into some PPAs that were wrong. These types, in our view, were at the wrong rate and at the wrong prices,” he said. “And today the country is being billed for many of these wrong PPAs.”

He said there is a need for the government to restructure some of these contracts.

“I know that the government has started some talks with the IPPs to renegotiate some of these PPAs,” he said.

He added that this is the way to go

Source: Classfmonline.com/cecil Mensah