- World Bank did not provide any guarantee to IPPs.
- The media has reported the World Bank issued guarantees to IPPs.
- World Bank acknowledged providing a guarantee for the Sankofa gas project.
The World Bank, in a recently released statement, has denied providing any financial guarantee to Independent Power Producers who signed Power Purchase Agreements (PPAs) with the Energy Company of Ghana (ECG). It, however, acknowledged supporting Ghana’s Energy Sector Recovery Plan (ESRP).
In the statement released, the Bank said: “Following recent media reports, the World Bank wishes to clarify that it has not provided any financing or guarantees to the Independent Power Producers (IPPs) that signed Power Purchase Agreements with the Government of Ghana or the Electricity Company of Ghana during the (Dumsor) energy crisis in 2014-2016.”.
Speaking on the ESRP, the World Bank acknowledged the importance of the process, saying, “The implementation of this policy will be essential to ensure that new power generation capacity is procured competitively and transparently based on the most cost-effective basis. This will prevent a recurrence of over-supply of generation capacity in future”.
The World Bank, however, noted that it provided a guarantee for the Sankofa Gas Project. The project has seen an increase in the availability of natural gas for the power sector.