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Business News of Saturday, 7 November 2020

Source: www.ghanaweb.com

Government injects GH¢4 million into ECG operations after clearing debt

Deputy Energy Minister Dr Mohammed Amin Adam has said the Nana Addo Dankwa Akufo-Addo-led government has committed GH¢4 million to the Electricity Company of Ghana(ECG) to help address some of its challenges.

The minister disclosed that this financial injection was made after the government paid debt it owed the power distribution company.

Speaking at the CBOD Rnergy Manifesto Town Hall meeting on Friday, Dr Amin Adam said the government has supported ECG to run efficiently.

“We have cleared government GH¢2.6 billion cedis debt to ECG. It kept accumulating and we had to clear that debt. We have even paid more. In fact, we have given them an additional GH¢4 million cedis so that we can inject liquidity into the operations of ECG for them to perform better”, Dr Amin stated.

He further indicated that his outfit has implemented the Cash Waterfall Mechanism (CWM) to prevent the growth of the sector-wide indebtedness.

Dr Amin believes that CWM is a requisite key policy intervention to ensure continuous liquidity of the power and gas sector players.

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