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12.02.2020 Business & Finance

Over ¢15bn Debt Crippling Energy Sector – John Jinapor

By News Desk
Over ¢15bn Debt Crippling Energy Sector – John Jinapor
LISTEN FEB 12, 2020

The opposition National Democratic Congress (NDC) says the energy sector is struggling to survive due to a GH¢15 billion debt.

A former Deputy Power Minister, John Jinapor, blamed the prevailing situation on the mismanagement of the sector by the current administration.

John Jinapor made these assertions at the NDC's Policy Dialogue Series on the Energy Sector on Wednesday, February 12, 2020.

“There are two kinds of leaders today; a visionary one, a quiet one who thinks of Ghana’s tomorrow, and a very loud, robust one who makes a lot of noise but does very little for us. That is what we face as a country. And like I said, the investments we [the NDC] made, if the current administration had sustained that path and continued on those programs and projects, Ghana would have been moving forward than we are today,” he said.

“The Ghana Gas Company built at a cost of over US$1 billion despite all these savings, today is indebted to the tune of about US$1billion. If you add what ECG is adding to it and you do the analysis within three years in the energy sector alone, you’re talking of a debt of about GH¢15 billion and that is not part of the national debt. There’s been a deliberate, consistent approach to take all these figures off the national accounting system and so they present to you a certain figure as our national debt but when you look at the contingent liabilities, they are very serious.” GRIDCo strikes over debts

In November last year, the Senior Staff and the Divisional Union of the Ghana Grid Company (GRIDCo) withdrew emergency services over debt owed GRIDCo.

The Union expressed concern about debts owed them by the Electricity Company of Ghana (ECG), the Volta Aluminum Company (VALCO) and Northern Electricity Distribution Company (NEDCo).

According to the Union, ECG and NEDCo owed about GHS607 million and GHS177 million respectively, while VALCO and PDS owed over US$32 million and GHS94 million respectively.

Gov't clears $1bn legacy debt owed Bulk Oil Distributors

The Chamber of Bulk Oil Distributors (CBOD) recently announced that Government had completed payments of all legacy debts owed it.

A statement issued by the Chamber on Monday [February 10, 2020] said the government made payments to the tune of US$1 billion as of January 13, 2020.

According to the Bulk Oil Distributors, the debt which had accrued for four years; between July 2011 and July 2015, was estimated at US$1.43 billion.

But the BDCs agreed to a slash off US$432 million, leaving about US$1 billion to be cleared via an agreed payment plan with the government.

—citinewsroom

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