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BOST Has No Strategic Reserves Of Petroleum – IES Backs NDC

Oil and Gas BOST Has No Strategic Reserves Of Petroleum – IES Backs NDC
FEB 16, 2020 LISTEN

The Institute of Energy Security has corroborated the Minority's claims that the Bulk Oil Storage and Transportation Company Limited (BOST) does not have strategic reserves of petroleum.

The Minority made this claim at a press conference in Accra last Wednesday.

The Minority had argued that Ghana's energy sector is in crisis, a position the Energy Ministry had disputed.

In a Citi News interview, Executive Director of IES, Paa Kwesi Anamuah Sakyi reiterated the Minority’s claim, adding that measures are underway to salvage the situation.

“For the last three years, BOST has not been able to keep any strategic reserve to cushion the country against supply and price shocks and I think that's clear and it’s true. But I also know very well from last month that, they are making an attempt to make sure they have that mechanism in place.

“In June 2019, there was a report by the Finance Committee of Parliament which indicated that the debt in the energy sector has risen to more than $4billion. But beyond that, we have not come across any document that we can agree on and speak to but I am certain that, some of these debts have been cleared so we can speak to the debt of region of $3 billion and not $15 billion.” Ghana's energy sector struggling over GH¢15bn debt – John Jinapor

The opposition National Democratic Congress (NDC) alleged that Ghana's energy sector is struggling 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.” NDC responsible for increased energy sector debt – Government

The government has attributed the increased debt in the energy sector to some policy decisions approved by the previous National Democratic Congress (NDC) government.

According to the government, although their innovative idea has helped to improve the debt situation, the level of debt left by the NDC government leaves the government with a lot more work to do.

Mohammed Amin Adam, the Deputy Energy Minister while addressing a press conference on Friday, 14th February 2019 said the debt in the sector was mainly because the erstwhile government allowed the Volta River Authority (VRA) to take gas from Ghana Gas consistently on credit.

“The [Energy Sector] debt has increased as a result of inter-utility debt which again was caused by the NDC. VRA according to them [NDC] owes Ghana Gas about $700million. This means that they take gas and produce power but they don't pay. The gas price has been so high, above the current levels that we have and how do you expect VRA to pay for something they don't take taxes from consumers to do? That is how the debts have accumulated,” he said.

—citinewsroom

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