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Debt Crisis Power crisis to worsen as VRA shuts down Tema Plant

Pulse Business' checks have revealed the VRA cannot afford the funds needed to supply crude oil to keep the plant runnng.

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Eng. Kirk- Kofi, VRA boss play

Eng. Kirk- Kofi, VRA boss

The Volta River Authority has had to close down its power plant in Tema for lack of crude oil to keep it operational.

Pulse Business' checks have revealed the VRA cannot afford the funds needed to supply crude oil to keep the plant runnng.

The company has borrowed 1.3 billion dollars from banks so far to power the plant. But banks have now refused to grant the Authority letters of credit to finance the purchase of crude oil.

This is the reason why the ECG is having to shed an extra 400 MW of power starting from today.

The plant that can also run on gas, is not getting a supply of gas either. This is due to the VRA and government's inability to pay debts owed the West African Gas Pipeline amounting to a total of 103 million dollars.

The current situation with the Tema Plant further compounds an already precarious situation in the energy sector which has seen the country shed load for three years now.

There president, John Dramani Mahama, and the power minister Dr. Kwabena Donkor have given a deadline of the December 30 2015 as the time when the energy crisis would be over, banking their hopes on some 850MW of emergency power that is supposed to be added to the national grid with the arrival of two KarPower barges reportedly on their way.

But it is becoming increasingly clear that peripheral infrastructural and debt management problems like the Tema thermal Plant problem will continue to plague the country, with or without the KarPower Ships.

Ghanaians, this weekend, have had to criticize the president for what they describe as a shift in goal post, when he said at the an Accra-based church Perez Chapel that the energy crises will end at the end of the year or before the 2016 general elections.

 

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