Gov’t settles prolonged US$203m inter-utility legacy debt

Minister of Energy, John Peter Amewu
Minister of Energy, John Peter Amewu

The prolonged inter-utility legacy debt component of US$203million for the power sector debt within the energy sector accrued in a period ending December 2016 is finally settled, Elikplim Kwabla Apetorgbor – Sunon Asogli’s Manager of Energy Trading, Research and Regulatory Affairs – has confirmed.

The debt involved both state-owned energy corporations and Independent Power Producer Sunon Asogli Power Ghana Limited, and affected the operational and financial performance of all parties involved within the power supply chain.

Mr. Apetorgbor, in a statement, indicated that the huge debt made it very difficult for the private sector organisation to obtain financial support to sustain its business operations and commit to future investments, and also affected its shareholders’ confidence.

He however narrated that as a result of collaboration with the government of Ghana through the Ministries of Finance and Energy, Electricity Company of Ghana Limited (ECG), Volta River Authority (VRA), Ghana National Gas Company Limited (GNGC) and Sunon Asogli Power (Ghana) Limited, the prolonged inter-utility legacy debt in respect of gas invoices has finally been settled.

The statement reiterated that the support from government through its agencies demonstrates its zeal to ensure that all corporations within the sector have a sound and healthy financial status to sustain their operations.

“The debt-settlement the will contribute to improving the credit rating of various organisations within the energy sector seeking credit facilities from both domestic and international banks. It will further reduce the indebtedness of government, ECG, VRA, GNGC and Sunon Asogli Power Limited, making their books much better than before,” he added.

He further emphasised that Sunon Asogli will continue to collaborate with all parties within the energy sector and government in sustaining and meeting the electric power demand in Ghana.

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