The Volta River Authority is liable for 98% of Ghana Gas’ debt stock according to 2018 PIAC report

The 2018 annual report of the Public Interest and Accountability Committee (PIAC) has revealed that the Volta River Authority (VRA) alone is responsible for almost 98.99% of the amounts owed the Ghana Gas Company by its suppliers.

VRA alone is responsible for almost 98.99% of the amounts owed the Ghana Gas Company by its suppliers.

The report indicated that the VRA owes Ghana Gas over $200 million as at the end of last year. The development is impacting on the operations of the company.

Portions of the 2018 report said “The Volta River Authority’s (VRA) indebtedness to GNGC amounted to US$222,427,108.43 in the period under review. This represents 98.99 percent of the total debt owed GNGC by its off-takers. The debt, as shown in Table 43, keeps mounting due to VRA’s inability to meet its debt service obligation.”

The report also admitted that the VRA is unable to pay its debt because other operators within the power supply chain (the Ghana Grid Company and the Electricity Company of Ghana) owe the authority.

Meanwhile, the Ghana Gas Company also owes the Ghana National Petroleum Corporation (GNPC) to the tune of $315.5 million.

This has been as a result of accumulated debts spanning 2016 to 2018.

PIAC’s report indicated that between 2014 and 2018, the value of total gas supplied reached $325.4 million.

However, Ghana Gas has so far paid about 3% of the entire debt. Payments of which were made in 2014 and 2015.

“The value of total gas supplied by GNPC to GNGC from 2014 to June 2018 is US$325,386,630.54, out of which GNGC has made two payments (one in 2014, and the other in 2015) amounting to US$9,856,621.67. This leaves an outstanding balance of US$315,530,008.87,” PIAC said in its findings.

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