We're Facing a $3 Billion Energy Debt Crisis - John Jinapor
Accra, Ghana - 13 Jan, 2025 - Ghana's energy sector debt has ballooned to a staggering $3 billion, according to Energy Minister-designate, John Jinapor. This alarming figure was revealed during his vetting before Parliament's Appointments Committee on Monday.
Jinapor attributed the surge in debt to ineffective management and escalating interest on existing debt. He noted that when his party left office, the consolidated debt stock was around $2 billion. However, a recent reconciliation meeting with key stakeholders confirmed that the debt had risen to $3 billion as of September 30, 2024.
The Energy Sector Levies Act (ESLA) has generated approximately GH₵45 billion over the years, but Jinapor emphasized that these funds have been insufficient to address the growing liabilities. He also dismissed claims that the debt was as high as $5 billion, citing official public records validated by Parliament.
“When we're leaving office, the debt stock consolidated was close to 2 billion. Fortunately, I have a document summary of energy sector debts and lenders through August 31, 2017, the ESLA PLC got a full audit of the entire energy sector debts,'' Mr. Jinapor stated.
"I refer to the 17 of the document. The total energy sector liability at the time was GH₵9.4 billion, they themselves use an exchange rate of 4.4, if you use this exchange rate of 4.4, the debt had then moved to $2.1 billion. So let me put on record that as at this time when the debt was validated, the debt was $ 2.1 billion.''
“As we speak today, the reconciled figure from official sources is $3 billion,” he added.
Source: Lead News Online
