Dubious Government Contracts Threatening Collapse of Ghana’s Energy Sector – Minority

The Minority in Parliament has expressed concerns about the return of load shedding, commonly referred to as ‘dumsor,’ attributing it to questionable contracts signed by the government through the Ghana Gas Company.

The Minority claims that the Presidency is pressuring the Ghana Gas Company to enter into an $800 million contract with the Phoenix Park Gas Processors Consortium under suspicious circumstances, bypassing parliamentary approval.

According to the caucus, this has contributed to a power deficit exceeding 500 megawatts on Tuesday, September 24, causing significant disruption to electricity consumers.

John Jinapor, the Ranking Member of Parliament’s Energy Committee, raised these concerns during a press briefing.

“Due to these dubious contracts, load shedding is currently happening, and GRIDCo has been instructed not to inform the public. On September 24, there was a deficit of over 500 megawatts, and on September 25, load shedding will continue, affecting customers across Ghana,” Jinapor stated.

He further revealed that Tullow Ghana has not been compensated for the gas it has supplied to Ghana Gas for the past nine months, with the company now threatening to halt gas supply.

Additionally, Independent Power Producers (IPPs) have sent a letter to the Finance Minister, warning of an impending power supply shutdown due to unpaid debts amounting to approximately $1.2 billion, signaling a potential collapse of the energy sector.

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