By Issah Mohammed, GNA
Accra, Feb 27, GNA – President John Mahama says the Government has secured immediate savings of US$250 million after renegotiating power purchase agreements with nine independent power producers.
Under the agreement, which sought to address the high cost of power, the President indicated that US$1.1 billion in legacy debt had been restructured for repayment between 2026 and 2028.
“These revised agreements will be submitted to cabinet, and I’m pleased to inform you, Mr. Speaker, will be brought here to parliament for ratification,” he said during the State of the Nation address on the floor of Parliament.
President Mahama said a robust framework had been established to strengthen and monitor implementation of the cash waterfall mechanism through the operationalisation of the Electricity
Company of Ghana’s single holding accounts, jointly overseen by the Ministry of Energy and Green Transition and the Public Utilities Regulatory Commission.
“This intervention has significantly reduced revenue leakages, and it has enhanced ECG’s capacity to meet its payment obligations,” he said.
President Mahama said Cabinet had approved the multiple lease method for concessions in the distribution utilities.
He noted that private sector participation, particularly in billing and collection, was the most effective way to significantly reduce power losses.
“It is worrying that the electricity company of Ghana continues to experience high power losses, with reports indicating that around 25 percent of generated power is lost,” he stated.
GNA
Edited by Kenneth Sackey