The energy sector’s debt has risen sharply to $3 billion, according to Energy Minister-designate, John Jinapor, who disclosed the worrying development during his vetting before Parliament’s Appointments Committee on Monday, January 13.
Jinapor, who previously chaired the energy subcommittee of the transition team, explained that the substantial increase in the sector’s liabilities was due to poor management practices and the escalating interest on existing debt. He detailed the history of the debt, noting that in 2017, the energy sector’s total liability stood at GH₵9.4 billion, equivalent to $2.1 billion at an exchange rate of 4.4.
Contrary to claims that the debt had reached $5 billion, Jinapor clarified that the official public record, as validated by Parliament, had confirmed the figure at $2.1 billion at that time. However, by September 30, 2024, the debt had risen to $2.5 billion, and after a recent reconciliation involving the Ministry of Energy, the Energy Commission, and the Electricity Company of Ghana (ECG), the debt was confirmed to have escalated to $3 billion.
Jinapor also referenced the Energy Sector Levies Act (ESLA), which has generated approximately GH₵45 billion over the years. Despite these funds being used to service part of the debt, he acknowledged that they had not been sufficient to stem the rising liabilities within the sector.
Source:Mybrytfmonline.com/Gumedzo Isaac Acheampong
