Energy Sector Restructuring We will sell VRA thermal plants to clear debt - Govt

Government has commenced the process to sell thermal plants belonging to the Volta River Authority (VRA) to Independent Power Producers (IPP).

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Energy Minister Boakye Agyarko play

Energy Minister Boakye Agyarko

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Deputy Finance Minister Kwaku Kwarteng says government,s decision to sell VRA thermal plants is part of measures to restructure the country’s energy sector for effective performance.

President Akufo-Addo in February this year during his maiden State of the Nation Address revealed that the country’s energy sector was heavily indebted threatening reliable power supply.

READ ALSO: VRA to settle energy debt by March 2017

According to him, efforts by former president John Mahama to solve the energy crisis that bedeviled the country led to a debt of over $2billion.

“We have inherited a heavily indebted energy sector, with the net debt reaching 2.4 billion US dollars as at December 2016,” the president said.

He added “I have to point out the alarming fact that 800 million US dollars of this debt is owed to local banks, which threatens their stability.”

As a result, he said the government intends listing the VRA and the Ghana Grid Company Limited (GRIDCO) on the Stock Exchange explaining that the move was part of a national electricity master plan being developed to solve the country’s debilitating power crisis.

READ ALSO: Govt will issue 15 yr bond to clear $ 2.4bn energy debts- Bawumiah tells IMF

Speaking on Morning Starr FM Mr. Kwarteng said the VRA would focus on hydro generation.

VRA currently owes Ghana Gas Company over 350 million dollars. WAPCO has often cut gas supply to the energy generator as a result of its indebtedness to the company.