Institute for Energy Security (IES) has urged government to reconsider the sale of the Volta River Authority’s, (VRA) assets.
Government’s announcement of the sale of some thermal plants owned by the Volta River Authority (VRA) comes as a surprise to the IES, a statement from IES said.
This comes after the President disclosed in parliament in February 2017 the possibility of listing VRA and Ghana Grid Company (GRIDCO) on the Stock Exchange.
Subsequently, the Minister of Finance has also indicated a restructuring of the power sector by bringing all hydropower generation under VRA and creating a thermal market under a new entity (SPV) with private sector participation.
IES’ statement said, “It is not out of place to boost private sector participation in the power sector, but to suggest inefficiency on the part VRA as the reason to sell off some thermal plants of the state institution to private players is misleading, mischievous and an attempt to bequeath the thermal assets to cronies.”
“Volta River Authority can’t be said to have limited capacity to operate efficiently and effectively these thermal assets, when government interferes in its operations and micromanages the institution,” the statement said.
“…for strategic nature of VRA, any attempt to cede part of its assets to private players is an attempt to dilute the state’s control in the energy sector that serves as leverage.”
IES is therefore appealing to government to reconsider the sale; and ensure that VRA recovers fully its operational cost as determined by standards, ensure that all debts owed VRA are paid and also VRA is allowed to operate without the unnecessary interference.
The Institute is also urging all stakeholders, staff and management of VRA and Ghanaians to resist the sale of these assets.
