Indebtedness of GNPC, TOR, VRA, ECG and 4 other energy-sector SOEs hit $2.4 billion
Deputy Minister for Energy, William Owuraku Aidoo, has revealed in Parliament that eight State-Owned Enterprises (SOEs) in the energy sector have a total debt of approximately $2.4 billion as of December 2021.
The disclosed figure was based on the validated debt matrix published by Deloitte in May 2023.
The eight SOEs include the Volta River Authority (VRA), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Ghana Grid Company Limited (GRIDCo), and the Tema Oil Refinery (TOR).
The remaining entities are the Bulk Oil Storage and Transportation Company Limited (BOST), Bui Power Authority, and the Ghana National Petroleum Corporation (GNPC).
Mr. Aidoo’s announcement came in response to a question posed by Mr. Edward Abambire Bawa, the Member of Parliament for Bongo. The query sought to ascertain the total indebtedness of these eight SOEs.
The disclosure follows demands from Independent Power Producers (IPPs) for the government to settle a $1.73 billion debt owed to them, warning of potential shutdowns if payments were not made by today, June 30.
During the parliamentary session, Dr. Clement Abas Apaak, the MP for Bulsa South, representing Mr. Bawa, requested that the Deputy Minister provide a detailed report of the individual indebtedness of each SOE.
In response, Mr. Joseph Osei-Owusu, the First Deputy Speaker, presiding over the session, directed the Deputy Minister to furnish the House with a comprehensive report on the debt of each SOE within one week.
The revelation of the significant debt burden carried by Ghana’s energy SOEs underscores the financial challenges faced by these entities.
Addressing the debt issue and finding sustainable solutions will be crucial to ensuring the stability and long-term viability of Ghana’s energy sector.
