Title and Overview

The program is a comprehensive roadmap developed by the Ministry of Energy to restore and sustain the financial viability of Ghana’s energy sector. Originally launched in May 2019, it was updated with an addendum in June 2023 and is scheduled to conclude in December 2025.

Video Overview (Summary)

The Financial Crisis

This slide illustrates the critical situation that triggered the ESRP. As of January 2019, the sector faced USD 2,748 million in legacy arrears, representing 5.7% of the 2017 GDP. Key structural problems included massive excess capacity (4,650 MW installed vs. 2,700 MW peak demand) and a gas oversupply.

Core Objectives and Scope

The ESRP focuses on three pillars:

  • Full Financial Viability: Ensuring revenues cover all costs.
  • Arrears Control: Stopping the accumulation of new debt.
  • Transparency: Increasing the publication of operational and financial data.

The Three-Phase Action Plan

The recovery was divided into phases:

  • Phase I (May 2019): Immediate actions, such as the Ministry of Finance paying electricity bills for government agencies.
  • Phase II (By May 2020): 21 action items focused on gas infrastructure and relocation of the Karpowership.
  • Phase III: Long-term reforms, including restructuring the Volta River Authority (VRA)

Progress Status

By January 2022, 57% of the original 30 action items were completed. Successes include the Takoradi-Tema Interconnection Project (TTIP) and the Least Cost Fuel Procurement Strategy

Key Achievements (2019-2023)

Interventions under the ESRP reduced the total shortfall by USD 4,878 million. Notable savings came from gas oversupply reduction (USD 3,110M) and the Karpowership relocation (USD 412M).

Shortfall Projections

This slide uses a bar chart to compare “Business as Usual” (BAU) scenarios against ESRP actions. Without the program, the annual shortfall was projected to exceed USD 1,500 million; with ESRP, this is targeted to drop significantly by 2027.

Implementation Timeline

A visual timeline tracks the journey from the 2017 ESLA Bond issuance to the 2023 ESRP Addendum approval and the 2024 World Bank Program for Results (PforR) activation.

Why the Program was Extended

The program was extended to 2025 due to “Exchange Rate Shocks” (the Cedi depreciating faster than the assumed rate) and higher-than-expected SOE generation costs.

The Extended 19 Action Items

For the 2023-2025 period, 19 new actions were added, including institutionalising inter-agency debt reconciliation and installing prepaid meters for non-strategic government agencies.

World Bank Support (PforR)

The World Bank provided USD 260 million to support four result areas, such as reducing power system costs via economic dispatch and improving the operational performance of the Electricity Company of Ghana (ECG).

Revenue Validation Audit

A 2025 audit by PwC highlighted discrepancies in revenue declaration at ECG, recommending monthly reconciliations and moving to a single approved collection account to ensure transparency

Governance Structure

The Energy Sector Task Force (ESTF), chaired by the Vice President of Ghana, provides the apex governance for the ESRP, supported by a specialised Working Group.

Operational and Financial Data

This slide presents hard data, such as the deployment plan for 693,000 NEDCo prepaid meters and the reduction of the Weighted Average Cost of Gas (WACOG) from USD 7.29 to USD 5.94 per MMBtu.

The Road to Viability Summary

A final visual summary of the journey: starting with a USD 12.5B projected shortfall in 2019 and aiming for a residual shortfall of just USD 1.6B by the end of 2025.

Glossary and Technical Concepts

References

  • ENERGY SECTOR RECOVERY PROGRAMME (ESRP) – ADDENDUM (2023): Prepared by: Ministry of Energy
  • INTERNATIONAL DEVELOPMENT ASSOCIATION PROGRAM APPRAISAL DOCUMENT ON PROPOSED CREDITS (Report No: PAD4401)- World Bank Programme for Revocery (May 2024)
  • ENERGY SECTOR RECOVERY PROGRAMME (ESRP) (2019): Prepared by: Ministry of Energy
  • Ministry of Energy/ Ghana Energy Sector Recovery Programme (GESRP)- Validation of the Electricity Company of Ghana (ECG) Revenue/Collection Accounts (2025)