Petroleum Minister Emmanuel Armah Kofi-Buah’s claim three days ago that government had paid $30 million out of some $140 million owed to the West African Gas Pipeline Company (WAPCo) has been dismissed by the company.
The company, which suspended the supply of gas via its pipelines, indicated that it was yet to receive any information regarding the payment of the said amount from Nigeria Gas (N-Gas).
A letter dated 16th June, 2016 and signed by Walter Perez, Managing Director of WAGPCo, said government was indebted to the company by over $101 million in unpaid bills.
Harriet Wereko-Brobbey, Corporate Affairs Director for WAPCo, blurted: “I don’t know if the Petroleum Minister is referring to payments made to the supplier that is N-Gas. We are transporters and we get paid by the supplier whose gas we transport. So it may be that payment has been made to the supplier, and we are yet to receive payment for the transportation, but we haven’t heard anything from even N-Gas on any payment.”
The Volta River Authority (VRA) is said to be owing N-gas about $180 million, while N- Gas also owes WAPCo $104 million.
Discussions
Speaking to Citi Fm yesterday, Ms Wereko-Brobbey said WAGPCo was in discussions with N-Gas to resume gas supply to Ghana.
“The issue is that we are in a difficult situation and so we have suspended our transportation services to the supplier that is N-Gas. So we indicated to N-Gas that they should kindly pay us money so we can transport because we have been transporting on their behalf and there has not been any payment. So for us, we expect payment so we resume transportation.”
No pipeline sabotage
Meanwhile, the company has also denied reports about the destruction of its pipelines due to militant activities in Nigeria, saying the cut in supply was due to government’s bills.
“On the issue of pipelines, I think we all hear about pipeline sabotage and so on, but the point I am making is that WAPCo’s issue is on gas transportation on the WAP-P. The WAP-P is in good condition. We are in the position to transport and we have suspended transportation because of payment,” she added.
CEPA
The Centre for Policy Analysis (CEPA) has also commented on the ongoing untruths being peddled by Ghanaian authorities on the gas supply cut brouhaha.
Dr Joe Abbey, Executive Director of CEPA, in an interview with Joy FM recently said: “Our immediate problem is not one of generating capacity. Our immediate problem is money. We have locked up VRA’s working capital. It is owing, it is owing other creditors and suppliers; it is owing Nigeria Gas. And our own Ghana Gas too we are almost crippling it because the Chief Executive has told us that VRA has not been able to pay for the gas they have taken.”
He said rather than paying the debt owed the N-Gas suppliers, government had shifted its attention to procuring oil, which was three times costlier than gas.
“If you turn to oil, it means that the tariffs that you have gotten now may not be able to cover the cost to VRA of producing power to us. So either you have to raise the tariffs again or we will again leave the VRA with unfunded substitute,” he warned.
No solution
Government did not offer any solution to Ghana’s power crisis which has lasted for four and half years old and crippled many businesses in its mid-year budget presented to Parliament on Monday.
By Samuel Boadi