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29.11.2019 Business & Finance

GRIDCo To Cut Power To VALCo In December Over US$30million Debt

By News Desk
GRIDCo To Cut Power To VALCo In December Over US$30million Debt
NOV 29, 2019 BUSINESS & FINANCE

The Ghana Grid Company Limited (GRIDCo) on Thursday says it will disconnect power to the Volta Aluminum Company Limited (VALCO) on December 30 because of a $30million debt owed it.

The management of the power transmission company said VALCO’s debt and that of Electricity Company of Ghana, and Northern Electricity Distribution Company was hampering the operations of the company.

Mr Jonathan Amoako-Baah, the Chief Executive of GRIDCO, who disclosed this at the annual general meeting of the company in Accra, said ECG and NEDCo also owed about GH¢607 million and GH¢177 million respectively.

He said the company had been recording losses for three years running, the last being the Net loss of GH¢114.3million in 2018.

Considering the role of the company in the power delivery system in the country, the loss-making trend in their performance needed to be a concern to all.

Mr William Owureku Aidoo, the Deputy Minister of Energy in charge of Power, noted that despite the weak financial performance of the company it managed to complete key projects, including the 225 KV Bolgatanga-Ouagadugou Interconnection Transmission Line and the 330KV Prestea-Kumasi Power Enhancement.

He noted that GRIDCo would be included in the sharing of the Energy Sector Levy Act fund to help boost the finance of the company.

The Deputy Minister said a cash waterfall mechanism was being developed as part of the Energy Sector Financial Restructuring Programme to ensure equitable allocation of revenue collection of ECG to stakeholder beneficiaries.

Besides that, he said, the Government of Ghana guarantee had been secured to back the loan given to GRIDCo by the Agence Francaise De Development.

Mr Stephen Asamoah Boateng, the Director General of State Interest and Governance Authority (SIGA), said his outfit would diligently work with GRIDCo to ensure an increase in shareholder value to yield reasonable return on investment through sound financial management and good corporate governance practices.

He said one of the key challenges that confronted some State Owned Enterprise (SOE) was weak corporate governance and accountability.

Mr Boateng stated that SIGA would continue to offer corporate governance and accountability and other training programmes to boards and management of the SOE’s, and as well strengthen their monitoring role.

He said the end of year report of GRIDCo showed that although the company had endured financial challenges, it had managed to record some achievements and had significantly increased power export to Burkina.

Mr Boateng commended GRIDCo for being adjudged the ’‘Power Service Provider of the Year – 2018/2019’’ at the African Power, Energy and Water Industry Awards programme and urged them to work hard and carry out their mandate.

---GNA

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