Bad Power Purchase Agreements signed by previous NDC gov’t coming back to haunt them - Ahiagbah

Richard Ahiagbah is the Director of Communications for the opposition New Patriotic Party (NPP). He blames recent financial losses of the Electricity Company of Ghana (ECG) on "egregious" inefficiencies. He also criticizes unfavorable power purchase agreements (PPAs) signed by the previous National Democratic Congress (NDC) government.

Ahiagbah spoke on JoyNews’ Newsfile. He condemned the NDC for signing agreements that require the state to provide fuel to Independent Power Producers (IPPs). He called this decision "sinful" and economically damaging.

He expressed confusion over the terms of these PPAs. Ahiagbah said, "I have not come to settle in my mind why we signed power purchase agreements where we agree to provide fuel for IPPs without recovering the cost." He noted that they simply bill us, and we pay.

He mentioned critiques from the World Bank, which described such contracts as "expensive and wrong." Ahiagbah argued that these agreements significantly contribute to ECG’s financial struggles. He also pointed out operational inefficiencies within ECG.

"There are leakages in the system," he stated. "ECG must ensure consumers pay for the power they use."

When asked why the NPP did not renegotiate or terminate these contracts during its eight years in power, Ahiagbah defended his party's record. He suggested that solving inherited problems is complex.

"You can be pardoned if you inherit a bad problem and couldn’t solve it," he said. "The person who created it should be held accountable."

In 2021, ECG suffered a loss of GH¢10.21 billion, worse than GH¢1.91 billion in 2020. Ahiagbah called for a holistic review of Ghana’s power sector agreements. He urged stakeholders to engage in constructive dialogue to address the financial burden on the state.