'Energy debt clearance claim is not true' - Kwadwo Poku
Kwadwo Poku, an energy analyst, disputed the government's claim of clearing all outstanding debts in Ghana's energy sector, speaking at an NPP policy committee press conference on August 5. He stated that "The figures that have been published by PURC do not sustain the fact that they are clearing all the indebtedness in the energy sector." Mr. Poku explained that while progress has been made with Independent Power Producers (IPPs), other debts remain unresolved.
Mr. Poku noted that the government has negotiated with IPPs to spread the payment of existing debts, which total about $1.1 billion, over four years. He acknowledged improvements in the energy sector's cash waterfall arrangement, specifically the prioritization of IPP payments, stating, "The first thing they do is that when money comes into the waterfall, they take care of all the IPP indebtedness." However, he argued that funds remaining in Level B of the payment structure are insufficient to clear debts owed to other key energy institutions, such as the Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), and Ghana National Gas.
Quick Summary
Energy analyst Kwadwo Poku has challenged the government's assertion of clearing all outstanding debts in Ghana's energy sector. He suggests that
Summary - read the full story for complete context.
Image: Joy Business
GhanaFront aggregates news from trusted sources. Click to read the original article.
Keywords
Explore related tagsMore from Joy Business
Related Stories
More from Business & Economy
Keep fuel subsidies temporary and well-targeted or risk fiscal damage - IMF warns Ghana
The IMF has a critical message for Ghana about its fuel subsidies-find out why these measures could be a double-edged sword for the nation's economy.
2h ago•3 min read
Youth unemployment in Ghana stubbornly high at around 30% - IMF
Despite efforts, Ghana faces significant hurdles in addressing youth unemployment and social protection, prompting questions about the effectiveness
6h ago•2 min read
New legal framework to enhance more efficient, investor-friendly services in Ghana - GIPA CEO
Discover how Ghana's new investment authority is set to revolutionize business services and attract greater capital to the nation.
6h ago•2 min read
Energy Minister engages NPA on implementation of GH¢2 diesel price relief
Discover the details of the Energy Minister's discussions with the NPA and how their collaborative efforts could impact the cost of living for
21h ago•2 min read
