An accumulated debt of US$735 million owed Ghana National Gas Company (Ghana Gas) by the Volta River Authority (VRA) is affecting the operations of the former.
Emmanuel Essel, Chief Finance Officer of Ghana Gas said this has compelled the company to borrow from banks for some infrastructural projects.
Ghana Gas supplies Lean Gas to the VRA for power production but the power producer has defaulted in payment to ease the supplier.
Mr Essel explained that, in 2018, the two companies agreed on some arrangements for the payment, which saw the VRA making a monthly payment of US$3 million.
The payment started in April 2018 but the VRA halted it in October, and the total the VRA paid was US$20 million instead of US$30 million both had agreed.
He said by their books, the debt of VRA to Ghana Gas stood at US$735 million at the close of 2018.
Albeit the Finance Ministry intervened with US$230 million through a balance sheet restructuring exercise, Mr Essel said some discussions were ongoing at the Board level to see how the debt could be restructured to enable the power producer clear it.
By: Umar Sheriff/awakenewsonline.com