Ghana: GRIDCo Disconnects Power Supply to VALCO Over Huge Debt

GRIDCO

Accra, Ghana, December 30, 2019//-The Ghana Grid Company Limited (GRIDCo) today disconnected power supply to the Volta Aluminum Company Limited (VALCO) over mountainous debts.

This follows the company’s failure to settle its over $30 million outstanding debt to the GRIDCo, a state-owned power transmitter.

A statement issued by GRIDCo today, said that the decision was made by its management after several attempts to get VALCO to pay the debt failed. 

It explained: “The disconnection is part of ongoing debt collection measures to mobilise the needed funds to support its operations.”

GRIDCo’s operations have been significantly impaired due to huge unpaid debts owed by its bulk customers, currently amounting to over GH¢1.2billion.

The worried Chief Executive of GRIDCo Jonathan Amoako-Baah said: “We play a critical role in Ghana’s power sector and we need every resource available to us to continue delivering on our mandate to our key stakeholders and clients.”

“VALCO’s debts continue to mount and will create major problems for our operations if nothing is done about it. We have been engaging the management of VALCO since the first half of this year to agree on a payment plan but nothing has come out of it.

“We have been left with no option as our continued state of affairs is unsustainable. We take the opportunity to entreat other customers indebted to GRIDCo to take steps to settle their debts.”

The company’s network expansion efforts have been hampered due to the current financial situation, board of directors of GRIDCo, lamented at the company’s recent Annual General Meeting (AGM) in November 2019.

African Eye Report

 

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