Blaming PPAs for Ghana’s ailing economy is the new low- Joyce Mogtari.

It is a complete misunderstanding of the power sector when you claim that power purchase agreements signed during an emergency, compared to regular times, are “too expensive,” Joyce Bawah Mogtari has explained.

The Special Aide to former President John Dramani Mahama was responding to claims made by the pro-NPP newspaper Daily Guide that power purchase agreements (PPAs) signed under the previous administration are responsible for the country’s current economic situation.

Mogtari argued that the agreements were for a fixed term and competitive with rates commensurate with the efforts and context at the time. She also questioned which investor or businessperson would be willing to invest $300 million in a power project during an emergency and take on the risk.

“Would any investor say you can take power whenever you want… if you don’t want it, we take the risk?” she asked.

The newspaper’s claim was based on an interview with the World Bank Country Director for Ghana, Pierre Frank Laporte. According to Joyce Mogtari, the newspaper lacks a proper appreciation of the sector and the involvement of the World Bank in finalising a comprehensive energy plan that guided the liberalisation of the power sector.

She further stated that none of the agreements signed during the NDC administration led to any financial loss to the state of Ghana, pointing out that the Energy Sector Levy Agreement (ESLA) was established to help clear the government’s indebtedness to independent power producers.

“Take or pay agreements are normal insurance or financial viability provisions in PPAs, and none, not even one of the agreements signed during the NDC administration, was expensive or led to any financial loss to the state of Ghana,” she explained.

“How much of the ESLA accumulations did the government pay the IPPs in 2022, and why has President Nana Akufo-Addo consistently diverted revenue that accrued to ESLA, leading to a debt of over $1.5bn?

Joyce Mogtari, tackling the claims made by the World Bank Director and the NPP, stated that the government has extended several take or pay agreements, including Karpower to 20 years and CenPower to 10 years.

She disclosed that the Akufo-Addo administration also extended the elapsed AKSA agreement for 15 years and signed a new 20-year contract with AKSA, both of which have take-or-pay clauses.

On claims that the PPAs are the cause of the country’s “ailing economy,” as the Daily Guide puts it, Joyce Mogtari said blaming PPAs for the country’s ailing economy is a new low, adding that it is the incompetence of Nana Akufo-Addo, Dr Bawumia, and Ofori-Atta that has worsened the plight of suffering Ghanaians.

“We are where we are because of their incompetence. Everyone knows that. We also know their recklessness and mismanagement of our resources and the huge loans they contracted, more to their benefit, have brought us here.

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