Ghana’s energy sector debt has surged to $3 billion, Energy Minister-designate John Jinapor revealed during his vetting before Parliament’s Appointments Committee on Monday, January 13.

Jinapor, who previously chaired the energy subcommittee of the transition team, attributed the increase in debt to poor management and the rising interest burden on existing liabilities. He explained that when the previous administration left office, the sector’s debt stood at around $2 billion.

Citing a document summarizing the energy sector’s financial position, Jinapor referred to a 2017 audit that pegged the total energy sector debt at GH₵9.4 billion, or approximately $2.1 billion at an exchange rate of 4.4. He noted that this figure had been officially validated by Parliament and dismissed claims that the debt had ballooned to as much as $5 billion.

By September 30, 2024, Jinapor said the debt had risen to $2.5 billion. Following a reconciliation process involving the Ministry of Energy, the Energy Commission, and the Electricity Company of Ghana, the debt was confirmed to have escalated further to $3 billion.

Jinapor also referenced the Energy Sector Levies Act (ESLA), which has generated GH₵45 billion over the years. However, he acknowledged that while these funds were used to service part of the debt, they have been insufficient in addressing the sector’s growing financial obligations.

Source:TheDotNews