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Former Member of Parliament for Bongo, Edward Abambire Bawa, has disclosed that the National Democratic Congress (NDC) left office in 2017 with an energy sector debt of approximately $2.4 billion. He asserts that this debt has significantly increased under the New Patriotic Party (NPP) government, worsening the challenges in the energy sector.
Bawa criticized the NPP administration for its failure to address the debt and meet financial obligations to Independent Power Producers (IPPs). This neglect, he claims, has deepened the energy sector’s fiscal crisis and contributed to the persistent power outages, commonly referred to as “dumsor,” affecting the country.
“The NDC left behind an energy sector debt of $2.4 billion in 2017, but the NPP government has failed to take the necessary steps to manage this debt. Instead, it has allowed it to balloon, creating even more problems for the sector,” Bawa stated during an appearance on The Big Issue on Channel One TV on Saturday, January 11, 2025.
He explained that while the NDC had initiated measures such as the Energy Sector Levy Act (ESLA) to mitigate the financial difficulties, the NPP administration has not effectively built on these efforts. According to Bawa, the failure to resolve the growing debt has left IPPs in a precarious position, impacting their ability to produce and supply electricity reliably.
Ghana has been experiencing frequent power outages in recent months, which have been largely attributed to the government’s inability to settle debts owed to the IPPs. These producers are responsible for supplying a significant portion of the country’s electricity, and their financial struggles have directly affected the stability of power production.
Bawa emphasized that the NDC’s debt, though substantial, was manageable under a structured framework. However, he criticized the NPP government for its poor handling of the sector, which he believes has led to the current crisis.
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