ACEP backs gov’t plan to sell stakes in VRA

The Africa Centre for Energy Policy (ACEP) is in support of government’s plan to sell a majority of its stake in the Volta River Authority (VRA).

Executive Director of ACEP, Ben Boakye argued that the sale of the thermal component of VRA will improve efficiency and accountability.

“We have held the position that Ghana needs to diversify the thermal component of VRA’s operations. What we have is a situation where, because the government owns VRA, the procurement process is actually hijacked by government and ministers and not the VRA we are supposed to hold accountable.”

“So what you tend to see is that, because that component of the institution is micro-managed by the government, they have ended up in so much debt. It is actually the thermal component of VRA’s operation that is killing the company.”

“Once there isn’t much problem with the hydro component the government should hive of the thermal component and give it into private hands so that the procurement of crude oil… will no more be the role of government so that we can have that efficiency required,” Mr. Boakye explained.

A Deputy Minister of Finance, Charles Adu-Boahen, disclosed to journalists recently, government’s plans to bring in private sector operators to manage the VRA.

He explained that private sector participation will ensure efficiency and lead to the production of power at a much cheaper price for Ghanaians.

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