[ 2015-03-26 ]

Ghana’s $100m debt to Nigeria Gas "not unusual" – Mona Quartey
Deputy finance Minister Mona Quartey has told
Morning Starr’s Kafui Dey on Starr 103.5FM that
the alleged $100-million debt owed Nigeria Gas by
Ghana, if true, is neither “strange” nor
“unusual.”

Responding to a claim by former Deputy Governor of
the Bank of Ghana, Dr Mahamudu Bawumia that the
country’s current power crisis is as a result of
the debt owed the Nigerian power firm, thus its
dithering in supplying gas to Accra to fuel
thermal plants for power production, Mrs Quartey
said: “The Government of Ghana, (the Ministry of
finance) does not owe Nigeria for gas, most likely
one of the agencies, possibly [state power
producer Volta River Authority] VRA who buys gas,
because the Ministry of finance does not buy gas,
but one of the agencies buys gas and if they do,
then they will have a credit line, therefore at
any point in time, there will be an arrears that
they are owing so that is not strange.”

“Maybe Dr Bawumia was talking about the quantum
but again considering how much those things
cost–oil and gas–to produce energy for us,
that amount is not unusual so it is arrears and
perhaps they are working on paying that down,”
she said.

Pressed by Kafui Dey if she would concede to the
figure claimed by the three-time Running Mate to
the main opposition New Patriotic Party’s
Flagbearer Nana Akufo-Addo, Mrs Quartey said:
“…I don’t know that number but I’m just
saying that it’s not unusual for that kind of
business and, therefore, whichever agency is
buying gas to produce electricity, it’s an
ongoing process…yes it is a debt but it is not a
burning debt.”


At his Tuesday lecture at the Central University
College on the economy in general, and the
$940-million bailout package from the
International Monetary Fund (IMF) in specific, Dr
Bawumia said: “The untold story of the erratic
gas supply from Nigeria is that Ghana owes Nigeria
Gas $100 million.”

“Nigeria Gas is therefore dragging its feet with
regards to the supply of gas to Ghana while this
amount is unpaid,” he asserted.
Apart from the alleged amount owed Nigeria Gas, Dr
Bawumia also said the Government of Ghana is
indebted to the VRA to the tune of Ghc1 billion, a
situation he observed has crippled the state power
producer’s ability to sufficiently produce power
for the country. Additionally, Dr Bawumia said the
Government owes state power distributor
Electricity Company of Ghana (ECG) Ghc700 million,
thus worsening the power crisis.

The indebtedness of the Government to the power
sector, he analysed, is what has compelled the
Akosombo Dam to overuse its water resources by
some 30 per cent, a situation that has resulted in
the current low water level in the hydropower
station.

Ghana is currently shedding between 400 and 700
Megawatts of power during off-peak and peak
periods, respectively. The crisis has come about
as a result of poor water levels in the three
hydropower stations, lack of gas flow from the
West Africa Gas Pipeline in Nigeria to thermal
plants in Ghana for production as well as the
breakdown of some plants. The crisis is taking a
toll on Industry, businesses and domestic
consumers. Power Minister Dr Kwabena Donkor has
promised to resign if he fails to resolve the
crisis by the end of December this year.

Source - Starrfmonline

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