Keeping the Power On: Lessons from Cote D’Ivoire’s Power Reforms

Want to ensure constant flow of power to support economic growth and development? Develop and maintain a legal and regulatory framework for the power sector encourages investor confidence from licensing to tariffing, assessment of counterparty risks, standard agreements and templates, etc.

You need clear organisation and structure: a clear and defined set of rules on how you pay the independent power generators (IPPs) and state ones like VRA without having to resort to subsidies and/or sovereign guarantees because your key offtaker at the distribution end, in our case ECG, is almost financially bankrupt, reeling under 22% technical and commercial losses for power produced.

Yes it’s that simple! After 25 years of topsy-turvy power reform programmes, Ghana has a lot to learn from Cote D’Ivoire in this respect. Ivory Coast is “very good at structuring bankable power purchase agreements”. That makes it easier for IPPs to raise project finance.”

Article: http://www.ft.com/cms/s/0/fe3de4b2-5ad1-11e5-9846-de406ccb37f2.html

About the Author

Theo Acheampong
Theo is an economist and social media enthusiast who provides regular commentary on socioeconomic and political developments in Ghana and Africa at large. Theo is passionate about leadership, entrepreneurship and the role of innovative technologies in solving Africa's developmental challenges.

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