Finance Minister Acknowledges Energy Sector Fiscal Risks, Assures Progress in Mitigating Shortfall
Finance Minister, Dr. Cassiel Ato Forson, has acknowledged ongoing fiscal risks within Ghana’s energy sector but reassured the public that measures are in place to address and eventually eliminate the sector’s financial shortfall.
In remarks made at a joint press conference on the 4th Review of the IMF-Supported Programme on April 15, Dr. Forson emphasized that the government has taken significant steps to mitigate these risks. He highlighted the operationalization of the single account mechanism and the implementation of the Cash Waterfall Mechanism, which is being strictly adhered to in order to ensure minimum contractual payments to Independent Power Producers (IPPs).
“We have now operationalized the single account mechanism and ensured that the Cash Waterfall Mechanism is being implemented according to guidelines to guarantee minimum contractual payments to the IPPs, among others,” Dr. Forson stated.
The Finance Minister further reiterated his commitment to leading the government’s efforts in fulfilling all obligations under the IMF-supported programme, which are crucial for securing the approval of the 4th Review by the IMF Board.
He assured stakeholders, including the public, the IMF, and other partners, of his personal involvement in the successful implementation of these commitments.
Dr. Forson also revealed that the approval of the 4th Review will unlock the immediate disbursement of the 5th Tranche of US$370 million, bringing the total disbursements under the programme to US$2.3 billion.
This marks a critical step in the government’s fiscal management strategy as it seeks to stabilize the energy sector and adhere to the requirements of the ongoing IMF programme.
