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Business News of Thursday, 25 September 1997

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Volta River Authority Thermal Plant To Be Ready Next September

Accra,(Greater Accra) 23, Sept. The Volta River Authority (VRA) thermal plant at Aboadze, near Takoradi, hopes to operate at its maximum capacity of 300 megawatts by September, next year. Mr Gilbert Dokyi, acting Chief Executive of the VRA, said this today when he briefed Mr Fred Ohene-Kena, Minister of Mines and Energy, and senior officials of the Ministry, during a familiarization visit to VRA offices in Accra. The first phase of the project is expected to be commissioned in November, this year. Mr Dokyi said a VRA survey indicates that consumer power demand is growing by at least five megawatts every month, posing a great challenge to the authority. For the VRA to meet the challenge, there is the need for government and the consuming public to give it their fullest cooperation. He said while it expects consumers to pay their bills promptly, the government should also try to create the enabling environment for utility providers to survive. Mr Dokyi said due to the low level of water in the Akosombo dam, VRA imports about 200 mw power from Cote d'Ivoire to supplement its generation between 1800 and 2200 hours daily. He said 60 mw of the imported power is exported to Togo. ''VRA is capable of expanding its system to meet the increasing demand if consumers and other partners honour their obligations as regards prompt payment of monies owed it''. He recalled the recent suspension of new power tariffs, saying it has seriously derailed its expected revenue with a loss of about 120 billion cedis. For instance, he said only half of one per cent out of the eight per cent revenue target for 1998 could be met. However, he said the Chamber of Mines had written to approve the proposed tariff increases, adding it was unfortunate that ''these tariffs were not accepted by the consuming public''. Mr Dokyi mentioned high operational costs and the depreciation of the cedi as a major setback for the VRA since most of ''our inputs are imported''. The VRA spends about three million dollars a month on its operations, he said, adding ''this is depleting our reserves''. Mr Dokyi said the VRA has lived up to its role of supplying economic and reliable service as well as expanding its power network. It has also promoted coordination among sister countries in the West African sub-region. The VRA is currently holding discussions to extend power from Yendi in the Northern Region to Lama Kara in the Republic of Togo, a stretch of about 150 kilometres. Apart from addressing environmental problems created by the formation of the Volta lake, he said efforts are also being made to improve the living conditions of communities along the lake. He cited the commissioning of the ''Onupa Nua'' hospital boat as one of such steps. Mr Ohene-Kena described as unfortunate the suspension of the proposed tariff increases but urged them not to lose hope, adding the opportunity is not totally lost. He, however, exhorted the VRA to justify its demands by rendering its services efficiently. The minister and his entourage were taken round the offices during which an officer of the Financial Services Department appealed to him to prevail upon the ECG to settle their indebtedness of 75 billion cedis.