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World Bank Group Commits US$ 5 Billion to Boost Electricity Generation in Six African Countries

Posted by Business in Ghana on August 6, 2014

WASHINGTON, August 5, 2014 – The World Bank Group today committed $5 billion in new technical and financial support for energy projects in six African countries– Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania_which have partnered with President Obama_s Power Africa initiative. 
Making the announcement on the second day of the 1st US-Africa Summit, World Bank Group President, Dr. Jim Yong Kim, said the new financial commitment was urgently needed to generate more electricity for the people of Africa, 600 million of whom have no access to electricity, despite the fact that Africa possesses some of the world_s largest hydropower, geothermal, wind and solar potential, as well as significant oil and natural gas reserves.

We think that the U.S. Power Africa initiative will play an extremely important role in achieving the goal of providing electricity for Africa. So today I’m very pleased to announce that the World Bank Group, following President Obama’s lead, will partner with Power Africa by committing $5 billion in direct financing, investment guarantees, and advisory services for project preparation in Power Africa’s six initial partner countries, Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania. The U.S. Government and the World Bank Group are working now on specific tasks and milestones which could help to achieve one quarter of Power Africa’s goal of generating 10,000 megawatts of new power in Sub Saharan Africa,_ Kim said. Read the rest of this entry »

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IMANI Report:  Electricity Privatization Conundrum- ECG is NOT for sale

Posted by Business in Ghana on August 4, 2014

Ghana has concluded agreements with the Millennium Challenge Corporation (MCA) for a $500m investment in Ghana’s energy sector. Specifically in the electricity sector, intense private participation is a requirement for drawing down the funds. Unfortunately given Ghana’s history of badly managed privatization deals, some rightly, are speculating the deal is an outright sale of ECG. This report is a complete evaluation of the agreement and the entire process which when aptly executed will revamp the electricity sector and help alleviate the challenges confronting the country in its energy sector. It provides in brevity the conditions in the MCA in relation to the second phase of the compact agreement and the expectations for disbursement of funds. Read the rest of this entry »

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Posted by Business in Ghana on June 21, 2014

By Matthew Mpoke Bigg,

ACCRA, June 20 (Reuters) – Ghana’s government reintroduced fuel subsidies in April, without announcing the move, and has spent around $85 million since then in extra payments, the head of the Chamber of Bulk Oil Distributors (CBOD) told Reuters on Friday.  The subsidies were scrapped early last year in a bid to reduce the budget deficit and restore macro-economic stability in Ghana, a country that exports oil, gold and cocoa and has seen five years of rapid economic growth.  The reintroduction was not publicly announced and senior government officials were not available for comment.

But the CBOD’s chief executive Senyo Hosi said the fuel importers his organisation represents know about the subsidies because they show as a line in the pricing structure they regularly receive from the National Petroleum Authority (NPA).  “From April 16, they have been doing that massively …. The government has spent roughly $85 million in fuel price subsidies in the second quarter which is not accounted for in the budget,” he said, citing NPA figures.  The new subsidies are around 13 percent of the combined total of the global market price plus the amount added by government in taxes and levies, he said. T he full cost to the government, however, may be higher once the impact of the currency depreciation is taken into account.  Other industry sources, who asked not to be identified, confirmed the reintroduction of the subsidies. Read the rest of this entry »

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Turkey’s power-ship maker Karadeniz to supply electricity to Ghana

Posted by Business in Ghana on June 18, 2014

By BizGhana Staff Writer

Ghana investment is Karadeniz Holding’s first in Africa and Chairman says the company eyes further expansion

ISTANBUL, June 17 (Reuters) – Turkish Karadeniz Holding has agreed to provide two electricity-generating vessels to power-hungry Ghana in a 10-year supply deal, the company’s chairman said.  Karadeniz builds what are effectively floating power stations which plug into electricity grids after berthing.  They run on fuel oil but can use natural gas as an alternative.  The Ghana investment is Karadeniz Holding’s first in Africa.  It already produces electricity for Iraq and Lebanon, through part of its fleet of seven power ships with a combined capacity of 1,100 megawatts (MW).  “There is an electricity shortage of around 100,000 MW in Africa that needs to be fulfilled urgently. This investment needs to be done,” chairman Orhan Karadeniz told reporters late on Monday.  Home to some of the leading mineral and oil producers, the African continent is chronically short of electricity and is heavily reliant on diesel imports for power generation.  “In addition, the countries in that region have plenty of oil and gas reserves.  As these reserves come into production, and the countries get richer, the demand for electricity would rise rapidly,” Karadeniz said. Read the rest of this entry »

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Untangling Nigeria’s Power Lines

Posted by Business in Ghana on April 25, 2014

Africa’s Top Economy Produces Half the Electricity of North Dakota—for 249 Times More People

By DREW HINSHAW

LAGOS, Nigeria—The quest to turn the lights back on in Nigeria is pitting some of the country’s richest men against rusted power lines, pilfered electricity and grenade-lobbing saboteurs.

Nigeria’s government built only 12 power plants since independence from the U.K. in 1960—all of them now in disrepair. Meanwhile, its population tripled to 174 million. The result: Nigeria produces less than half as much electricity as North Dakota for 249 times more people. Blackouts strike 320 days a year, according to the World Bank.

Now, Africa’s top economy has asked its wealthiest businessmen to get the plants humming again. Last November, the Nigerian government auctioned off six power plants, including a 50-year-old tumbledown facility located near swampland.

That plant now belongs to Tony Elumelu, a Nigerian mogul whose company made its name running a local Hilton resort. In the months to come, the hotelier hopes to jolt the power plant back to life, pushing out a surge of electricity into this country where big city offices charge their laptops with car batteries and the poor eat by candlelight. Read the rest of this entry »

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Waking Up from the Pipe Dream Part 2

Posted by Business in Ghana on March 30, 2014

By Charles Wereko-Brobby (Dr), Chief Policy Analyst, Ghana Institute for Public Policy Options (GIPPO),  tarzan@eyetarzan.org

The Government of Nigeria and NGas have made it clear that it does not respect the sanctity of the Gas Supply Agreement that underpins the supply of natural gas to Ghana, Benin & Togo. So much for ECOWAS Economic cooperation and integration!

Add this to Nigeria’s continuing bar of our industrial products and we might as well bury ECOWAS and stop the waste of half-yearly summits that have failed to deliver a single tangible outcome of regional integration for almost 40 years of the Lagos Plan of Action.

Instead of begging Nigeria to get some “soppy” supply, let us absorb the reality and wake up from the West African Pipe dream and take bold and decisive steps that ensure a reliable and ample supply of our own gas resources to fuel our power plants

The key to getting it right lies with our full understanding of the key implications of the betrayal that has been visited on Ghana, and to respond appropriately and fulsomely! Read the rest of this entry »

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Waking Up from the Pipe Dream

Posted by Business in Ghana on March 23, 2014

By Charles Wereko-Brobby (Dr), Chief Policy Analyst, Ghana Institute for Public Policy Options (GIPPO),  tarzan@eyetarzan.org

“It is not worth the paper it is written on” is one of the most used sentences in everyday dialogue. It’s most famous manifestation is the 1938 speech of British Prime Minister Neville Chamberlain describing the Munich Agreement with Hitler as bringing “Peace in our Time”.  Within one year, World War 2 broke out and the rest is history.

The Government of Nigeria, acting in concert with its Nigerian national Petroleum Company (NNPC), and its joint venture partners, Chevron Nigeria and Shell Nigeria, have finally come off the vacillating wall and told the Government and people of Ghana, that the agreement  to supply 123 million cu ft gas per day is not worth the paper it was written on .

This is the full import and meaning of the outcome of the Minister of Energy’s mercy mission to Nigeria which yielded the pathetic capitulation that no more than 50 million cu ft of our contracted supply can be guaranteed. Call me a war monger if you like, but as with 1938, Ghana must take this Nigerian slap in the face as having bloodied our nose, sabotaged our economy, and tantamount to a declaration of war. Read the rest of this entry »

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Aggreko and Shanduka Recognised for Delivering Africa’s Best Fast Track Power Project

Posted by Business in Ghana on April 12, 2013

The power project has been awarded at the Africa Energy Awards

JOHANNESBURG, South-Africa, April 11, 2013/ The Aggreko Shanduka cross-border power project, located at Ressano Garcia in Mozambique has been awarded Africa’s Best Fast Track Power Project in 2012 at the Africa Energy Awards. The award ceremony took place during the gala dinner of the Power and Electricity World Africa conference and exhibition being held from the 8th to 11th of April in Johannesburg.

Commissioned in July 2012, the Ressano Garcia project is recognised as the world’s first interim cross-border IPP (Independent Power Provider) project. Utilising natural gas from Mozambique’s Temane gas fields, the output of the plant is being injected directly into the national grid of Mozambique on site via a purpose built substation. The project saw the generation and supply of 110 MW of power to Electricidade de Mocambique (EDM), the national utility of Mozambique and cross-border to Eskom, the South African national utility. Read the rest of this entry »

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