Government has pledged to convert the debts owed it by the Ghana Grid Company Limited (GRIDCo) into equity and support it with funds from the Energy Sector Levy Act (ESLA) Bond to ensure improved and reliable power supply.
Mr Joseph Cudjoe, a Deputy Minister of Energy in charge of Finance and Infrastructure, made this known at the Ninth Annual General Meeting of GRIDCo in Accra on Thursday.
He said government had already disbursed 5.664 billion Ghana cedis of the 10 billion Ghana cedis Energy Sector Levy Act Bond to energy sector firms.
He pledged government’s commitment to disbursing the second tranche soon to ensure frequent, fair and equitable cash flow for reliable and sustained power transmission.
Mr Cudjoe urged the Management of GRIDCo to restructure the company’s operations by being more efficient and venture into markets outside Africa to turnaround its net losses into profitability.
GRIDCo recorded a total revenue of GHc715 million, representing a 6.14 per cent increase in revenue accrued in 2016, which was GHc673, 835 million.
However, non-payment by its key customers and the inclusion of interest cost of loans contracted for the West African Power Pool asset resulted in a Net Loss of GHc31 million in 2017.
The meeting reviewed the Company’s financial performance for the 2017 fiscal year while stakeholders planned the way forward towards making it more profitable in the ensuing years.
Ambassador Kabral Blay-Amihere, the Board Chairman of GRIDCo, said the Company was focused on adopting efficient strategies to maintain a robust transmission system with ample power reserves to meet the increasing electricity demand and engender economic growth.
He said it was poised to providing Grid Consulting Services to utility companies in the West African Sub-region as part of its external relations, and that it was determined to reinforce its position as a leader in the West African Power Pool (WAPP).
Ambassador Blay-Amihere reiterated the Board’s commitment to guide the Company in making steady investments into the National Interconnected Transmission System (NITS) to ensure reliable electricity supply.
“We’re optimistic about Shareholder’s support for the Company with the needed financial assistance in the current financial year, to nurture the pursuit and implementation of crucial strategies necessary for the optimal achievement of GRIDCo’s vision and mission,” he said.
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