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Business News of Thursday, 15 October 2015

Source: GNA

VRA owes WAPCo US$181 million

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Mr Walter Perez, Managing Director of West African Gas Pipeline Company (WAPCo), said the Volta River Authority (VRA) has received gas and pipeline-related transportation service totaling $ 231 million.

He said out of the said amount, the VRA has paid only $ 50 million with an outstanding balance of $181 million. VRA therefore owes WAPCo $ 103 million.

Mr Perez revealed this at a news conference in Accra on Wednesday.

He said WAPCo has regularly engaged VRA, the Ghana Public Utility Regulatory Commission and the relevant ministries and government authorities to find a solution before it reaches crisis level.

“Unfortunately, these efforts have not achieved the desired results,” he said.

Mr Perez said, a month ago WAPCo received a formal notification from VRA gas shipper N-Gas that deliveries to VRA should be curtailed effective October 16.

He said in so doing N-Gas informed WAPCo of the intent of one of its major gas suppliers, Nigeria National Petroleum Company to curtail gas supply as a result of N-Gas being a payment default due to the inability of VRA to settle its gas supply and transportation invoices.

The Managing Director said WAPCo is certain that those in positions of authority in the country are fully aware of the information and hope that they are taking appropriate action to prevent the curtailment, “otherwise WAPCo is contractually obligated to take deliveries to VRA as 12am Friday October 16 2015”.

He said WAPCo management is keenly aware and sensitive to the effect that this directive from N-Gas could have on power generation in Ghana and find it unfortunate that the VRA debt situation has been allowed to deteriorate to the point where it now jeopardises WAPCo very existence as a company.

“It also jeopardises the only viable option of providing sufficient on-time off take assurance for Ghana TEN and Sankofa developments.

Mr Perez emphasised that: “WAPCo remains hopeful in spite of the current crises as we believe the WAGP remains critical energy infrastructure for Ghana.”

“Further we are firm in our belief the WAGP is vital to the no-time and lowest-cost delivery of Ghana’s indigenous natural gas resources and WAPCo will continue to dialogue with the relevant authorities and trust that WAPCo, a company in which Ghana owns shares, will not be allowed to go under.”

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