The International Perspective for Policy & Governance has called for tougher scrutiny of the proposed Ghana Russia nuclear project, warning that the financing, technology and long term fiscal implications must be clear before the country makes major commitments.
The proposed 2,000 megawatt plant emerged from discussions between President John Dramani Mahama and Russian President Vladimir Putin at the Russia Africa Summit in Moscow.
Foreign Affairs Minister Samuel Okudzeto Ablakwa announced on October 31 that Russia had agreed to work with Ghana on the project to support energy security and industrialisation.
Russia’s state owned nuclear company Rosatom had separately confirmed that it was discussing large nuclear power projects with Ghana and three other African countries.
IPPG questions financing and fiscal exposure
IPPG said nuclear power could help diversify Ghana’s electricity generation mix, but argued that the proposed capacity cannot be assessed solely on the amount of electricity it could produce.
The policy group wants government to disclose how the plant would be financed, which risks would fall on Ghana and whether sovereign guarantees or other state backed commitments would be required.
Those details, it said, could have significant consequences for public finances and future electricity tariffs.
“The strategic merit of the proposed partnership will ultimately be determined by its ability to deliver reliable and affordable electricity without creating disproportionate fiscal liabilities or compromising established regulatory and project development processes.” - IPPG
No detailed financing arrangement, construction timetable or final reactor design has been publicly announced for the proposed plant.
Technology choice also under scrutiny
IPPG also wants clarity on the reactor technology behind the proposed 2,000MW capacity and whether the configuration would be suitable for Ghana’s electricity grid.
It said any Russian proposal should be considered alongside Ghana’s existing vendor engagements and technology assessment process rather than operating outside the country’s established nuclear development programme.
Ghana is currently in Phase 2 of its nuclear power programme, which covers preparatory work before construction. The Nuclear Regulatory Authority says the country is building regulatory capacity while developing rules, safety systems and other infrastructure needed for nuclear power.
The IAEA framework also requires countries pursuing nuclear power to address 19 infrastructure areas, including financing, grid readiness, nuclear safety, human resources, waste management and stakeholder involvement.
Government urged to disclose implementation plan
IPPG wants the government to bring relevant stakeholders into the process and publish a comprehensive framework covering the scope of the proposed arrangement, financing, risk sharing, technology selection and implementation.
For the group, the question is not simply whether Ghana should pursue nuclear energy, but whether a project of this scale can supply reliable power without leaving the country with unsustainable financial obligations or bypassing the regulatory work already underway.
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