ECG recovers GHS 18.5m from state institutions; optimistic of recovering entire GHS 5.7bn debt
The Electricity Company of Ghana (ECG) has successfully recovered GHȼ18.5 million owed by three of the country’s largest state institutions, according to a statement from the power distributor. The total amount owed by Parliament, the Ghana Airport Company Limited, and the state broadcaster, Ghana Broadcasting Company – GBC, was GHȼ46.9 million, and ECG’s recovery of the funds is seen as a positive step for the country’s struggling energy sector.
Out of a total of GHȼ13 million owed by Parliament, the legislature has committed to the payment of GHȼ8.5 million to prevent disconnection. The Finance Ministry will contribute GHȼ5 million towards the payment, with Parliament processing the rest electronically. The move by Parliament to settle its debts with the ECG is seen as a positive development, given that the institution has been criticized in the past for not paying its bills on time.
At the Ghana Airport Company Limited, the ECG’s team encountered resistance from the security team, who accused them of invading the premises. The issue was quickly resolved, however, and the airport company agreed to pay an upfront amount of GHȼ10 million towards the GHȼ28 million owed in arrears. The company also committed to paying the balance of GHȼ18 million within two weeks.
The state broadcaster, Ghana Broadcasting Corporation, owed the ECG GHȼ5.9 million, but the Ministry of Information had already reached an agreement with the Energy Ministry to pay the amount this year after clearing some GHȼ17 million of the total debt last year.
The ECG is currently leading a national task force to recover outstanding debts from state-owned institutions, and the power distributor is optimistic that it will be able to recover 100% of the entire GHȼ5.7 billion owed by these institutions by the end of the nationwide exercise. The company’s efforts to recover these debts are seen as critical for the stability of Ghana’s energy sector, which has been plagued by power outages and high costs.
According to industry experts, the ECG’s successful recovery of these funds from the state institutions could have a positive impact on the country’s economy. “The energy sector is a critical component of the economy, and if the ECG is able to recover these debts, it will go a long way towards stabilizing the sector and boosting economic growth,” said Kwame Owusu, an economist at the University of Ghana.
The government has also welcomed the news of the ECG’s successful debt recovery efforts, with the Minister of Energy, Dr. Matthew Opoku Prempeh, calling it a “step in the right direction.” The government has been working to reform the energy sector and attract more private investment, but these efforts have been hampered by the outstanding debts owed by state-owned institutions.
Despite the challenges, the ECG is optimistic about the future of Ghana’s energy sector. “We are committed to working with our partners to ensure that the energy sector is stable and reliable,” said Laila Abubakari, Manager of External Communications at the ECG. “We believe that our efforts to recover these debts will have a positive impact on the sector and on the country’s economy as a whole.”
As the ECG continues its nationwide exercise to recover debts owed by state-owned institutions, many are hopeful that the successful recovery of these funds will help to stabilize the energy sector and boost economic growth in Ghana.
The Electricity Company of Ghana (ECG) has successfully recovered GHȼ18.5 million owed by three of the country’s largest state institutions, according to a statement from the power distributor. The total amount owed by Parliament, the Ghana Airport Company Limited, and the state broadcaster, Ghana Broadcasting Company – GBC, was GHȼ46.9 million, and ECG’s recovery of the funds is seen as a positive step for the country’s struggling energy sector.
Out of a total of GHȼ13 million owed by Parliament, the legislature has committed to the payment of GHȼ8.5 million to prevent disconnection. The Finance Ministry will contribute GHȼ5 million towards the payment, with Parliament processing the rest electronically. The move by Parliament to settle its debts with the ECG is seen as a positive development, given that the institution has been criticized in the past for not paying its bills on time.
At the Ghana Airport Company Limited, the ECG’s team encountered resistance from the security team, who accused them of invading the premises. The issue was quickly resolved, however, and the airport company agreed to pay an upfront amount of GHȼ10 million towards the GHȼ28 million owed in arrears. The company also committed to paying the balance of GHȼ18 million within two weeks.
The state broadcaster, Ghana Broadcasting Corporation, owed the ECG GHȼ5.9 million, but the Ministry of Information had already reached an agreement with the Energy Ministry to pay the amount this year after clearing some GHȼ17 million of the total debt last year.
The ECG is currently leading a national task force to recover outstanding debts from state-owned institutions, and the power distributor is optimistic that it will be able to recover 100% of the entire GHȼ5.7 billion owed by these institutions by the end of the nationwide exercise. The company’s efforts to recover these debts are seen as critical for the stability of Ghana’s energy sector, which has been plagued by power outages and high costs.
According to industry experts, the ECG’s successful recovery of these funds from the state institutions could have a positive impact on the country’s economy. “The energy sector is a critical component of the economy, and if the ECG is able to recover these debts, it will go a long way towards stabilizing the sector and boosting economic growth,” said Kwame Owusu, an economist at the University of Ghana.
The government has also welcomed the news of the ECG’s successful debt recovery efforts, with the Minister of Energy, Dr. Matthew Opoku Prempeh, calling it a “step in the right direction.” The government has been working to reform the energy sector and attract more private investment, but these efforts have been hampered by the outstanding debts owed by state-owned institutions.
Despite the challenges, the ECG is optimistic about the future of Ghana’s energy sector. “We are committed to working with our partners to ensure that the energy sector is stable and reliable,” said Laila Abubakari, Manager of External Communications at the ECG. “We believe that our efforts to recover these debts will have a positive impact on the sector and on the country’s economy as a whole.”
As the ECG continues its nationwide exercise to recover debts owed by state-owned institutions, many are hopeful that the successful recovery of these funds will help to stabilize the energy sector and boost economic growth in Ghana.
