Gov’t to Cough Up $1.1 billion to Settle ENI Debt- Finance Minister

The Minister for Finance has expressed his frustrations about the continuous ballooning of the country’s energy sector financial burden.

In a Facebook post, he disclosed the government is burdened to pay $1.1 billion this year to settle debt to ENI.

The amount, he said, covers monthly invoices, LC replenishments, and outstanding arrears.

According to the lawmaker, this is a direct consequence of years of neglect in the sector by the previous administration.

“For far too long, critical obligations were pushed aside, leaving us with a broken system that now demands urgent and painful corrections. The previous government failed to address these mounting debts, kicking the can down the road while the liabilities piled up.”

Painting a picture of the current state of the sector, Ato Forson said despite the monthly energy costs of 2.5 billion cedis, the Electricity Company Ghana (ECG) collects just 1.3 billion cedis, with a gaping shortfall of 1.2 billion cedis every month.

The Minister is worried that the debt would have to be settled with finances which would otherwise have been used to undertake prudent developmental projects.

“At a recent meeting with ENI officials, I made it clear to them that we are left with no choice but to find the money that could have been used for other worthwhile pursuits like development, healthcare, and education simply to pay for commitments that should have been honoured years ago.”

That notwithstanding, he has committed to stabilizing the sector, clearing the inherited debts and ensuring Ghana’s energy future is no longer crippled by poor decisions of the past.

“It is frustrating that we are in this position, but we will not shy away from our responsibilities.”

Source: opemsuo.com/Hajara Fuseini