How Otumfuo Secured World Bank Assistance Over Ghana’s Excess Energy
Otumfuo Osei Tutu II, Asantehene, in 2019 engaged the World Bank for assistance over Ghana’s energy sector excess capacity which at the time was a thorn in the country’s flesh.
These payments were being made as part of existing power purchasing agreements with Independent Power Producers (IPPs) despite not being in use and accumulated a debt of GH¢17 billion.
Speaking at the launch of the two new high-level information technology programmes at the Accra Business School in 2022, former Vice President Dr Mahamudu Bawumia said this was one of three factors that accounted for the country’s debt distress and sent their government seeking a bailout from the International Monetary Fund (IMF) in 2021.
The King of the Asante Kingdom under the radar, engaged the World Bank for assistance to deal with the albatross.
His Majesty’s international alliance came in handy to the country at the time. He travelled to Washington DC purposely for an engagement with the Bank.
This was made known during a visit by the World Bank’s Vice President for Western and Central Africa, His Excellency Ousmane Diagana to the Manhyia Palace in Kumasi on January 10, 2024, to discuss issues relating to the delayed Kumasi Urban Mobility and Accessibility Project (KUMAP).
While addressing the King, HE Diagana referenced the King’s relationship with the World Bank and his numerous visits to them to offer his invaluable guidance and counsel to them.
The guidance, he indicated, was highly cherished. He therefore expressed gratitude to the King.
“We could not be in Accra without asking to be here in Kumasi… Thank you for your leadership and guidance you continue to provide to the World Bank.”
The Monarch also expressed appreciation to the Bank for always accepting his requests as he chronicled the energy sector’s excess capacity as one.
“I am aware that when I came last time in 2019, I discussed generation problems- energy generation problems where we had an excess of about 600 million at that time for energy level we had not used. I engaged the president to find a solution to that in terms of avoiding that from eating into our budget and now I’m told it’s about 1.5million.”
At the time, he said, he requested a grant from the World Bank to deal with the crisis as well as technical expertise which were all granted.
“At that time, I asked your President to give me a Grant to cover that while we got technical assistance… to plan to export the excess energy to Mail and others. I think we have about 5,000MW installed and only using 3,000MW….”
His Majesty informed the Vice President and his team that he would embark on further discussions with their outfit over the remaining excess capacity.
He also highlighted other grants that related to the School Feeding Project and a budget support grant which were restored in 2019 through the same engagement.
“We’ve done that with the school feeding which I appreciate. I remember when we talked to them about the withdrawal of the $180 million at the time and they told me to take it along when returning to Ghana. At the time too you had withdrawn some $500 million for budgetary support but because of energy situation it was withdrawn.”
Accompanying the Vice President for the meeting were Robert Taliercio, Country Director, Michelle Keane, Operations Manager, Madhu Raghunath, Practice Manager, Urban Development, Resilience and Land, Dhruva Sahai, Senior Energy Specialist/Program Leader and Akua Pokuaa Timpabi, Transport Specialist.
The team was led by key officials from the Ashanti Regional Coordinating Council including the Chief Director, Michael Owusu Amoako, the Regional Economic Planning Officer, Beatrice Kwarteng and the Regional Director, DUR, Francis Gambrah.
Source: opemsuo.com/Hajara Fuseini
