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Expedite plans to clear 2.4bn cedis energy debts – Industry to govt

Players in the energy sector are urging government to act briskly in issuing the 15-year bond to clear the 2.4 billion dollars debt.

In their view, the plan will bring relief to affected entities and revive the energy sector.

Government has announced plans to issue a 15-year bond to settle all outstanding debts in the energy sector.

The move is also aimed at improving the financial strength of the State Owned Enterprises (SOEs) in the energy sector and make them competitive.

Government’s indebtedness to the energy sector has been cited as one major threat to the growth of the sector.

Documents cited by Citi Business News indicate that as at 31st December 2016, government’s net debt in the energy sector was 2.3 billion dollars.

The General Manager for Finance and Administration at WAPCo, Mike Enendu tells Citi Business News government must endeavor to fulfill the promise to enhance the progress of the sector.

“What is very good for me is that the government is working very seriously to clear the debt in the energy sector. For me that is critical. However the method that they decide to use to declare it, I’m sure that they’re the authorities there who have the requisite experience and knowledge, properly well guided on whatever method that they want to use,”

“But for those of us in the sector, we are looking forward to seeing that the debt problems in the sector are sorted out,” he stated.

Meanwhile, banks are also optimistic of significant improvement in their non-performing loan portfolios as government initiates moves to clear all outstanding debts owed them.

The debt has been cited as a threat to the banking sector as it has led to about 36 percent increase in the bad loans of banks as at February 2017.

Source: http://citibusinessnews.com/index.php/2017/05/03/expedite-plans-to-clear-2-4bn-cedis-energy-debts-industry-to-govt/

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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