The Government of Ghana is considering merging key energy sector organizations such as the Volta River Authority (VRA) and the Bui Power Authority (BPA) into a single management entity or privatizing them. While the rationale might be to streamline operations and reduce inefficiencies, this approach risks undermining the very backbone of Ghana’s energy sector. These entities are crucial to national development, and mismanaging them could have disastrous consequences for the country. Instead of merging, we should focus on allowing strategic, goal-oriented leaders with strong technical and management skills to take the helm, not political appointees with little expertise.
The Value of VRA and BPA
The Volta River Authority (VRA), established in 1961, has been at the forefront of Ghana’s energy supply. It manages the Akosombo Dam, Kpong Dam, and other power plants that produce a significant portion of the country’s electricity. On the other hand, the Bui Power Authority (BPA) oversees the Bui Hydroelectric Dam, which provides supplementary power to the national grid. Both of these organizations are critical to Ghana’s energy infrastructure, not just for electricity generation but also for maintaining energy security.
Mismanagement of these entities could result in:
- Frequent power outages.
- Increased energy costs.
- Loss of investor confidence in Ghana’s industrial capacity.
- A decline in the quality of life for ordinary citizens.
The Case Against Merging VRA and BPA
Merging VRA and BPA, or bringing them under a singular management structure, might seem like an efficient approach at first glance, but it overlooks the unique responsibilities and expertise required to manage each organization. BPA, for instance, has its strategic focus, which is different from VRA’s. It manages not just electricity generation but also the ecological and agricultural systems around the Bui Dam. Merging the two could dilute the specialized focus and complicate the already delicate balance of energy management.
Furthermore, history shows that mergers of large state-owned entities often result in increased bureaucracy, misaligned goals, and a dilution of accountability. The inefficiencies that emerge from such mergers are likely to harm Ghana’s already fragile energy sector.
The Role of Strategic Leadership
Instead of merging, the focus should be on improving management by appointing strategic, technical, and goal-oriented leaders. Ghana’s energy sector should not be a playground for political appointees. Often, political appointments are made based on loyalty rather than competence, resulting in inefficiencies and poor decision-making.
Countries like Singapore and Malaysia have demonstrated that appointing competent, non-partisan, and experienced leadership to manage their public enterprises is key to their success. Singapore’s Public Utilities Board (PUB) and Malaysia’s Tenaga Nasional Berhad (TNB) have flourished due to visionary, technical leadership rather than political influence. These countries have appointed leaders with a proven track record in both technical expertise and management.
Singapore’s Public Utilities Board (PUB)
In Singapore, the PUB is responsible for both water management and electricity. The government operates with a clear mandate: the institution must be profitable and efficient, while still providing essential services. This balance is achieved by appointing technocrats and specialists to key leadership positions, ensuring that decisions are based on merit, expertise, and strategic goals, rather than political affiliations. The result is that Singapore enjoys one of the most reliable and efficient energy systems in the world.
Malaysia’s Tenaga Nasional Berhad (TNB)
TNB is Malaysia’s largest electric utility company, and it operates as a publicly listed company with strong government oversight. Instead of political appointees, the company is led by experienced engineers and business professionals with deep sector expertise. This model ensures that energy generation is managed efficiently, and that the company remains both financially viable and operationally sound. Importantly, TNB’s leadership is held accountable for its performance, which has contributed to its success.
What Ghana Needs to Do Differently
- Merit-Based Leadership Appointments
Ghana’s energy sector should emulate these countries by appointing leaders based on technical and managerial merit. Only those with a proven track record in power generation, infrastructure development, and strategic leadership should be considered for leadership roles within VRA and BPA.
- Clear Accountability Structures
These entities need clear, well-defined performance goals and accountability structures. In Singapore and Malaysia, CEOs and senior managers are held accountable for the operational success and profitability of their organizations. In Ghana, many public entities lack this level of oversight, leading to poor performance without consequences. Proper accountability mechanisms will ensure that leaders are motivated to improve service delivery and maintain financial sustainability.
- Investment in Technological Advancement
Modern energy management requires the adoption of cutting-edge technology. Countries like the United States and Germany have embraced smart grids, renewable energy integration, and energy-efficient technologies. Ghana needs to invest in upgrading its energy infrastructure with similar technologies, and this requires leaders who understand global trends in energy management. Political appointees are often not equipped with the expertise to navigate these complexities.
- Privatization is Not the Solution
While privatization may seem like a solution to inefficiencies, selling off VRA and BPA to private investors could result in profit-driven motives overtaking public service responsibilities. This can lead to higher energy costs for consumers and reduced access to electricity for low-income communities. Instead, these organizations should remain state-owned, but with professional management at the helm.
Conclusion: The Need for Strategic, Goal-Oriented Leadership
Merging the Volta River Authority and Bui Power Authority under one management structure or privatizing them would be a mistake. Instead, the focus should be on appointing capable, strategic leaders with the necessary technical expertise to manage these institutions. Ghana’s energy sector is far too important to be left in the hands of political appointees who lack the vision and technical know-how required to steer the country towards energy security and sustainability.
By emulating successful management models from countries like Singapore and Malaysia, Ghana can maintain its energy sector’s integrity, ensuring that VRA and BPA continue to serve as beacons of national development.
References:
Singapore’s PUB Annual Reports.
Tenaga Nasional Berhad: A Case Study in Effective Public Enterprise Management.
“Energy Sector Reforms: Lessons from Singapore and Malaysia” (2022), World Bank Group.
An Article by Citizen, Ing. Peter Debrah
(BSC, MSC, MSCE, MBA, MBA, DiPL, DSCE, PhD Cand)
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