The prolong inter utility legacy debt (worth USD$203M) component of the power sector debt within the energy sector accrued by the end of 2016 involving both state-owned corporations and Independent Power Producer, Sunon Asogli Power Ghana Ltd, has been cleared by government.
This debt is said to have affected the operational and financial performance of all parties involved within the power supply chain.
“It became very difficult for the private sector organization to obtain financial support to sustain its business operation, commitment to future investments and also affected our shareholders wealth,” a statement from Sunon Asogli Power noted.
“As a result of collaboration among the Government of Ghana through the Ministry of Finance, Ministry of Energy, The Electricity Company of Ghana Limited (ECG), Volta River Authority (VRA), Ghana National Gas Company Limited (GNGC) and Sunon Asogli Power (Ghana) Limited, the prolonged Inter Utility Legacy Debt worth USD$203 million in respect of gas invoices has finally been settled. The support from Government through its agencies demonstrate its zeal to ensure all corporations within the sector have a sound and healthy financial status to sustain their operations,” the statement added.
According to Sunon Asogli, the settlement of the debt has contributed to improving the credit rating of the various organizations within the energy sector seeking for credit facilities from both domestic and international banks.
“It has further reduced the indebtedness of government, Electricity Company of Ghana Limited (ECG), Volta River Authority (VRA), Ghana National Gas Company Limited (GNGC) and Sunon Asogli Power (Ghana) Limited making their books much better. We will continue to collaborate with all the parties within the energy sector and the Government of Ghana in meeting the electric power needs,” Sunon Asogli Power added in its statement.
