The Energy Ministry in 2017 stated that it is the most indebted sector in the economy after it inherited huge debts from the previous governments.
"We have inherited a gargantuan heavily indebted energy sector with the net debt reaching US$2.4 billion dollars as at December 2016."
The Energy Minister at the time, Boakye Agyarko, noted that this made him the most indebted minister.
A breakdown of debts owed by the Energy Ministry showed that the banks were owed US$782 million dollars, while fuel suppliers were owed US$440 million dollars.
The US$782 million is debt owed the banks by state owned power producer Volta River Authority (VRA). VRA also contributed US$278 million dollars to the US$440 million dollars owed fuel suppliers, while TOR contributed 162 million
Read the full story originally published on June 13, 2017 by GhanaWeb
The huge chunk of the Energy sector’s debt which is owed banks in the country has negatively affected the balance sheet of the banks and is the main cause of the banks’ continuous rise in nonperforming loans.
The Bank of Ghana in its January 2017 report on the banking industry said the banking industry remains positive, especially after the successful restructuring arrangements to reduce debts owed by energy-related SOEs to the banks.
A breakdown of the debt shows that the banks are owed US$782 million dollars, while fuel suppliers are owed US$440 million dollars.
The US$782 million is debt owed the banks by state owned power producer Volta River Authority (VRA). VRA also contributed US$278 million dollars to the US$440 million dollars owed fuel suppliers, while TOR contributed 162 million.
Delivering his first State of the Nation Address to Parliament, President Akufo-Addo said, efforts by the previous government to resolve the energy sector challenges was unproductive, adding that his government inherited a heavily indebted energy sector.
‘We have inherited a gargantuan heavily indebted energy sector with the net debt reaching US$2.4 billion dollars as at December 2016.’
This the Energy Minister, Boakye Agyarko says made his ministry and by extension him the most indebted Minister in the Country.
Mr. Agyarko also noted the lack of payment for electricity consumed by government organisations coupled with improper distributions losses resulted in the huge energy sector debt.
Speaking at the 2017 Ghana Energy Summit, Boakye Agyarko said his government has developed a cash fall system to improve the collection electricity bills.
Former Energy Minister Boakye Agyarko