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Energy Minister-designate John Jinapor has raised concerns over the escalating energy sector debt, which has surged to $3 billion.
During his vetting before Parliament’s Appointments Committee on Monday, January 13, Mr. Jinapor attributed the ballooning liabilities to poor management and compounding interest on existing debts.
“When we left office, the consolidated debt stock was approximately $2 billion. By August 31, 2017, a full audit of energy sector debts and lenders, conducted under the Energy Sector Levies Act (ESLA) PLC, pegged the liability at GH₵9.4 billion, using an exchange rate of 4.4,” he explained.
“This validation process showed that the debt had grown to $2.1 billion at that time,” Mr. Jinapor said, dismissing previous claims that it was as high as $5 billion.
The debt has since risen steadily, reaching $2.5 billion by September 30, 2024, according to reconciliation meetings with key stakeholders, including the Ministry of Energy, the Energy Commission, and the Electricity Company of Ghana (ECG). Mr. Jinapor confirmed the latest reconciled figure is now $3 billion.
He further noted that despite the Energy Sector Levies Act (ESLA) generating approximately GH₵45 billion over the years to service part of the debt, these funds have proven insufficient to halt the sector’s growing financial burden.
“The escalating debt underscores the urgent need for better management and reforms to stabilize the energy sector,” he concluded.
Source:NKONKONSA.com
