A member of the National Democratic Congress (NDC) Communications Team, Hamza Suhuyini, asserted on May 2nd that Kumasi narrowly avoided significant power outages throughout 2024 due to investments made by the previous NDC administration, specifically highlighting the Ameri power plant. He argued that the current New Patriotic Party (NPP) government has inflated its energy sector achievements by relying on infrastructure developed under the NDC.
Context: Ghana’s Energy Sector Challenges
Ghana has a history of power supply challenges, often referred to as “dumsor,” which significantly impacted daily life and economic activity. The Ameri power plant was established in 2015 as a direct response to a severe “dumsor” crisis. This emergency measure involved a Build, Own, Operate, and Transfer (BOOT) agreement with Ameri Energy, a UAE-based company, for a five-year duration.
The Ameri plant, with a capacity of approximately 250 megawatts, consists of ten 25MW units running on natural gas. Its primary purpose was to rapidly increase electricity generation when the nation faced critical shortages. The NDC administration at the time acknowledged significant underinvestment and mounting debt within the energy sector as key issues threatening its stability.
NDC’s Role in Energy Infrastructure
Mr. Suhuyini contended that the relative stability in Ghana’s power supply in recent years is not solely attributable to the NPP. He maintains that the foundation for this stability was laid by investments made between 2014 and 2016, a period marked by acute power shortages.
He accused the NPP of perpetuating a “bubble of deception” by claiming credit for energy stability built on NDC-era investments. The NDC, he stated, was transparent about the sector’s challenges, including inadequate investment and crippling debt. These issues were openly discussed in national forums and addressed through initiatives spearheaded by former President John Dramani Mahama.
“That is why plans like Ameri came into being,” Mr. Suhuyini explained, emphasizing that the NDC’s strategy encompassed both increasing generation capacity and ensuring financial stability for the sector.
ESLA and Allegations of Mismanagement
Beyond generation capacity, Mr. Suhuyini pointed to the introduction of the Energy Sector Levies Act (ESLA) as another critical NDC initiative designed to tackle liquidity challenges within the energy sector. He stated that ESLA was intended to provide financial support to stabilize the sector.
However, he alleged that the NPP government mismanaged the ESLA funds. “They collateralised it and got in excess of about GH₵10 billion, and only succeeded in using less than GH₵4 billion or so to pay BDCs. Where did the rest go?” he questioned.
Mr. Suhuyini further challenged the NPP’s narrative of maintaining uninterrupted power supply during its tenure. He argued that the party eventually had to rely on what it previously termed “excess capacity” to meet escalating demand, particularly during election periods.
“When reality began unfolding, they saw the need for that excess capacity and had to rely on a chunk of it to cope with increasing demand,” he stated. He reiterated that the NDC had anticipated financial challenges and established ESLA as a mechanism to address them, but claimed these efforts were undermined by the NPP’s handling of the funds.
Attributing Current Challenges to Past Policies
Mr. Suhuyini asserted that any current power supply issues should be traced back to past policy decisions made during the NPP’s tenure, rather than the current administration or the short period under former President Mahama. He described the NDC’s forward planning, including the investments in generation and financial mechanisms like ESLA, as “progressive thinking” essential for government action.
Implications and Future Outlook
The debate highlights the ongoing political discourse surrounding Ghana’s energy sector management and the legacy of past administrations. The effectiveness and financial stewardship of energy sector investments, such as the Ameri plant and ESLA, remain key points of contention.
For consumers and businesses, the underlying stability and affordability of electricity supply are paramount. The differing perspectives suggest that scrutiny of energy sector policies, funding, and infrastructure development will continue to be a critical issue. Attention will likely focus on how current and future governments manage existing infrastructure, secure new investments, and ensure transparent financial practices to prevent recurring power crises and support economic growth.
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