VRA to part pay $30m of debt to Cote d'Ivoire

The Volta River Authority (VRA) on Wednesday said it has made a firm commitment to settle 30 million dollars representing 60 per cent of its 50 million dollars indebtedness to the Electricity Company of La Cote d'Ivoire by the end of December this year.

VRA has already taken the necessary steps to transfer five million dollars to the Ivorian power utility and another 10 million dollars would be disbursed within four weeks after clearance of the first instalment.

Dr Charles Wereko-Brobby, Chief Executive of VRA in a statement issued in Accra said the commitment means VRA's precarious financial situation would be further worsened and its ability to provide reliable and sustainable electrical power may also suffer.

A three-member Ivorian delegation, has since Monday been negotiating with the executive of the VRA to seek firm pledges on the settlement of the its indebtedness for power purchased over the last few years.

The statement said the two parties also agreed on the establishment of an Escrow Account for VRA to make monthly fixed payment into it.

It said the payment would mean that VRA would not be able to address the problem of the low level of the Volta Lake and other priority maintenance scheduled to ensure quality supply of electricity.

This, the statement said would however, be possible if tariffs are enhanced considerably to make funds available for the procurement of crude oil to run the thermal plant at Takoradi next year.

The two parties also discussed the extension of power supply to the country for 2002 and beyond. A decision on the volume of power to be imported would be agreed on later and would depend on VRA's ability to pay promptly for such imports, it said.

Dr Wereko-Brobby led the VRA's team while Mr Alain Ekolan, Deputy Chief Executive (Operations) of Ivorian Power Utility led his side.