The Volta River Authority (VRA) owes the Ghana Gas Company Limited an amount of US$ 735 million. The debt was incurred as a result of the VRA’s inability to pay for gas supply to power its power terminal plant.
The development, according to the Ghana Gas Company, is affecting its finances.
Speaking in an interview with Accra-based Unique Fm, the Head of Finance at Ghana Gas, Mr Emmanuel Essiel said the company will however not halt supply to of gas to VRA since halting supply of gas to the company could plunge the country into a power crisis.
He indicated that government has shown commitment in reducing the debt from over US$900 million to US$750 million.
Mr Essel said “90 per cent of our business is with VRA. We do give them lean gas for power production and so it is expected that we will receive moneys for the supplies that we give them for power production. Unfortunately, over the years, that payment has not been forth coming.”
He explained that Ghana Gas in 2018 entered an agreement with the company to pay US$3 million every month as part of measures to help defray its debts.
Mr Essel said “Sometimes from April, however that seized in October and so all together last year we received just around US$20 million from VRA as against the average of US$30 million that we give them every month. So at the end of the year, we have recorded a depth of US$735 million that is owed by VRA.”
He, however, said discussions are still on going at the board level with the government on how to get VRA to pay their debt.