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The government has tentatively agreed on a payment plan with the West African Gas Pipeline Company (WAPCo) to settle the state’s $20 million debt. WAPCo had previously cut off the gas supply required for power generation, resulting in power outages in parts of the country. The Ghana Grid Company (GRIDCo) reported a supply gap of 550MW during peak times. Despite reaching an agreement, it is important to note that some power outages are still expected since the arrangement does not immediately guarantee gas transmission from Takoradi to Tema.
In the midst of this situation, the Minority in Parliament has called on the government to promptly clear its debts to prevent the country from sliding into an energy crisis. Edward Bawa, a member of the Mines and Energy Committee of Parliament, has proposed that the government work out an arrangement with WAPCo to address the issue. He emphasized the importance of ensuring a continuous supply of gas from Obuasi to Tema to avoid power disruptions.
Bawa explained the reason behind WAPCo’s decision to halt gas supply, citing the outstanding debt issue. According to him, WAPCo had not received payment since January 2023, leading to the accumulation of unpaid bills. He also highlighted the role of the Ghana National Petroleum Corporation (GNPC) as a guarantor for the Electricity Company of Ghana (ECG), which was supposed to make payments to WAPCo. However, due to the disruption of the cash flow mechanism, where ECG’s revenue is distributed among utility companies, ECG was unable to settle its liability.
Source:Omanghana.com
