Mr. Tsatsu Tsikata, former CEO of the Ghana National Petroleum Corporation (GNPC), has highlighted the mistakes made by the World Bank in Ghana’s energy sector during the 1980s and 90s.
He pointed out that during that period, when arguments were being made for the use of gas to support hydropower, the World Bank strongly opposed it, whereas gas has now become a significant component of the energy sector.
Mr. Tsikata’s comments were in response to the views expressed by the World Bank Country Director, Mr. Pierre Laporte, who criticized the Power Purchase Agreements (PPAs) negotiated during the Mahama administration, describing them as poorly negotiated and expensive. Laporte called for an urgent review of these agreements.
In an interview with Alfred Ocansey on the Ghana Tonight Show on TV3, Mr. Tsikata, who is also a private legal practitioner, stated that the World Bank had made serious mistakes in understanding Ghana’s national energy situation.
He cited the 80s and early 90s when the GNPC emphasized the importance of gas as a complementary source to hydroelectric power based on available evidence. However, the World Bank held a contrary view and opposed the addition of gas capacity.
Mr. Tsikata further highlighted that fuel costs, which contribute significantly to the challenges in the power sector, can be traced back to the use of light crude oil and are linked to the World Bank’s previous stance on gas utilization.
He found it interesting that the World Bank is now actively engaged in the discussion on Ghana’s energy sector, considering their past misjudgments.