The Volta River Authority (VRA) says it is raising a pool of funds through the Banking sector in the country to help settle its indebtedness of about US$182 million to Nigerian gas suppliers – N-Gas and the West African Gas Pipeline Company (WAPCo).
In a bid to look for various means to defray the outstanding debt, the power generator says it is now paying its monthly bills, and is trying to close off the piling up of more debt.
“We paid our bill for July; we are preparing to pay our bill for August. There is an outstanding bill for which we have a special team and arrangement to cater for. We are putting some banks together to try to get us funds to pay off that debt,” Kofi Ellis, Business Development Manager of the VRA revealed in an interview with B&FT newspaper.
Meanwhile WAPCo’s CEO, Walter Perez says VRA’s debt to it must be paid to enable the company remain a viable commercial entity.
“What has changed is that VRA has begun to pay what they consume on a monthly basis but there is still no reduction of the overall debt. They are paying for what they use every month but the debt must be paid down for us.”
Managing cash flow from the distribution end of the power value chain has been very challenging for the ECG; the power off-taker is often unable to pay the VRA timeously for generated power, which in turn makes it difficult for the latter to pay gas suppliers.
The VRA is equally indebted to the Ghana Gas Company to the tune of over US$130million.