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Nigeria Gas debt to be paid in 3 tranches

  • SOURCE: | qwesa2big

    The Power Ministry has indicated that Ghana will settle its $170 million debt it owes Nigeria Gas Association in three tranches.

    Spokesperson for the Ministry Kweku Sersah said the first payment will be made by November 2015, assuring that government will meet all the payment deadlines.

    “The high powered delegation that went there was able to negotiate for Nigeria Gas to continue to supply the country the needed gas…they agreed to have follow up meetings to negotiate the terms of payment and that it has been stretched into three tranches – from now to February – to enable VRA to pay up the outstanding debt by February ending”, he said.

    He indicated that if West African Gas Pipeline Company (WAPCo) had been a little bit patient, they would not have come to the point of threatening government because “processes had started for the payment of the $9.5 million”.

    He was however unable to disclose when the second and third payments will be made.

    WAPCO last Wednesday held a press conference and threatened to cut gas supplies to Ghana’s power generator, the Volta River Authority (VRA), unless more than a $150 owed it was paid.

    The Managing Director of WAPCo, Mr. Walter Perez, told journalists the decision followed a formal order from N-Gas, the company that ships gas to the VRA, through WAPCo.

    “We are certain those in positions of authority in Ghana are fully aware of this information, and we are hopeful they are taking appropriate action to prevent curtailment,” he said.

    Mr Sersah said a comprehensive strategy will be put in place to ensure that the country is not plunged into any debt situation like that again

    Meanwhile, representatives of Nigeria Gas Association have arrived in Ghana Monday morning to continue negotiations on how to settle the outstanding $170 million debt.


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