Dear Editor,
The energy sector is under severe constraints owing to the lack of capital investments over the years, coupled with strong growing demand. As a consequence, the country is experiencing a spate of power outages. The government understands that it is critical that the necessary intervention is made with alacrity focusing on short term remedy, while pursuing the longer-term energy transformation agenda, inter alia, the gas-to-energy project, hydropower (Amaila), and investment in other renewable energy sources over the medium to long term.
However, it is important for the nation to be aware of the timely investments in the sector over the years. One would recall that the incumbent government in its previous term (pre-2015) proposed the Amaila falls hydro power project in 2011 (twelve years ago) aimed at increasing the power generation capacity as well as reduction in the cost of energy.
The chart herein illustrates the capital expenditure and budgetary allocation for power generation for the period 2011-2023. For the years 2011 ($11.1B), 2012 ($18.5B), 2013 ($27.7B), 2014 ($21B) & 2015 ($2.3B). These allocations were then reduced by $52.6B by the political opposition in the National Assembly. These allocations were largely associated with the proposed Amaila falls hydro power project. The capital budgets for 2016 were $3.3B, 2017 $3.4B, 2018 $2.9B, and 2019 $4.3B. In 2020, the capital budget by the incumbent administration towards the sector amounted to $12.6B, nearly three times the 2019 budget, and in 2022 and 2023, the capital allocation amounted to $24.3B and $50.6B respectively. These allocations were largely in relation to the transformational gas-to-energy project which is projected to be completed by 2025.
Sincerely,
Joel Bhagwandin