Question $1($Compulsory$)$

You are appointed as the Minister of Energy in Ghana and you are faced with an eminent

electricity supply challenge. In Ghana God has blessed them with several energy resources

including: Solar, Coal and Nuclear. In recent times Ghana discovered oil and gas reserves in

commercial quantities and producing. However, the natural gas reserves are not sufficient for

a Liquified Natural Gas $($LNG$)$ export Project. Domestic consumption of the gas is therefore

considered.

i$.$ Solar

ii$.$ Coal

iii. Nuclear

iv$.$ Natural Gas

a$.$ Critically evaluate the advantages$/$disadvantages of each of these energy sources for

electricity generation and financing options for Ghana. $(10$marks$)$

b$.$ Rank the following projects options and indicate which of them should be developed first,

which of them should be developed for the short or long term. $(5$marks$)$

c$.$ Explain the processes involved in the commercialization and otherwise, non$-$

commercialization of the natural gas market in Ghana $(5$marks$)$

d$.$ Distinguish between renewable and non$-$renewable energy as related to the Ghanaian case

above and categorize the energy sources as either renewable or non$-$renewable $(5$marks$)$

Question $2$

a$.$ In financial upstream oil and gas projects, International Oil and Gas Companies

$($IOCs$)$ previously used equity funds. But debt financing and project diversification

are increasingly adopted by IOCs to fund large scale upstream oil and gas projects.

Discuss the various mechanisms used to finance the Sankofa Gas Project in Ghana by

the various partners $($ENI$,$ Vitol and GNPC$).(15$marks$)$

b$.$ Discuss the various steps required in undertaking financial evaluation of an energy

project in Ghana $(10$marks$)$

Question $3$

a$.$ Critically evaluate the role of institutional investors $($World Bank$)$ as a source of

funds for energy projects in Ghana $($Hint: provide examples$).(10$marks$)$

b$.$ Explain the following terms and support with examples as related to energy finance

and risk management

a$.$ Recourse and non$-$recourse financing $(4$marks$)$

b$.$ Debt and equity $(4$marks$)$

c$.$ Sustainable bonds and green bonds $(4$marks$)$

d$.$ Weighted Average Cost of Capital $(3$marks$)$