The West African Gas Pipeline Company (WAPCo) has warned that it will take drastic action against the government of Ghana if it fails to pay debt owed the company by close of year 2016.
According to the company, government’s outstanding balance of 162 million dollars of which 98 million dollars is owed to WAPCo, and the remaining owed to N-Gas, is negatively affecting its operations.
Speaking at conference in Accra, the Managing Director of WAPCo, Walter Perez lamented that the cash position of the company is fast deteriorating.
“Without a substantial cash infusion and regular cash in-inflows, WAPCo will be forced to take drastic actions to remain viable in the short-term. As such we appeal to you once again for support,” he said at the conference chaired by Petroleum Minster, Emmanuel Armah-Kofi Buah.
Not enthused about the delay in paying a 30 million dollars debt promised by government in an agreement, Mr. Perez maintained the failure on the part of government in settling the debt puts WAPCo in position that constrains its financial obligation.
“Twenty million dollars has been paid by VRA – this leaves a payment balance of USD$30 million to make up the USD$50 million payment agreed upon in July,” he recounted.
“The financial position of the company remains very desperate. There remains an outstanding balance of 162 million. Our cash position continues to deteriorate due to the ongoing payment default by Volta River Authority (VRA),” he added.
He however pointed out that, the company has met all its obligation in supplying gas to the VRA.
“Since our last meeting, 30mmscfd is available now for VRA and that we are also aware that plans are in place to ensure that the agreed upon 60mmscfd will be available by end of year,” he said.
He warned that efforts aimed at achieving ECOWAS’ vision of economic development and regional energy integration could be derailed if steps are not taken to make companies such as WAPCo viable.