Citi Business News has gathered that government is seeking to directly use the outstanding debts owed the Ghana National Gas Company by the VRA, to service part of the Chinese Development Bank (CDB) loan facility Ghana Gas secured to construct the Atuabo Gas Processing Plant.
Sources within the Finance Ministry say a committee comprising of officials from the VRA, Ghana Gas, and the Power Ministry have been tasked to look at the modalities and certify the outstanding debts.
The VRA currently owes Ghana Gas in excess of 350 million dollars for the supply of lean gas for the generation of power at the Aboadze enclave.
The government of Ghana contracted a one billion dollars loan facility from China to be paid within a period of five years, for the construction of the gas processing plant situated at Atuabo in the Western Region.
However speaking to Citi Business News on the development, the Corporate Affairs Manager of Ghana Gas, Alfred Ogbamey, was hopeful of a rebound in the financial strength of the company with the settlement of the huge debts.
“The VRA owes us about 350 million dollars; talks are ongoing with VRA and policy makers to ensure that the money is paid. This money is something that we are looking forward to hoping that the payment would be made quickly to avail enough funds to us to make the company more liquid.”
Dr. George Ajah-Sipa Yankey, the Chief Executive Officer (CEO) of the Ghana National Gas Company (GNGC), has decried the VRA’s indebtedness to the Gas Company which has accumulated in excess of 350 million dollars.
According to Dr. Sipa Yankey, the situation has made it difficult for the Ghana Gas company to service the Chinese Development Bank loan facility.
The Ghana Gas boss however expressed optimism that Ghana Gas would be able to pay the loan within a period of five years if VRA redeemed its indebtedness.
By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana