Government challenged to rethink sale of VRA assets

The Institute for Energy Security (IES) has challenged the government to rethink its decision to sell assets of the Volta River Authority because it is not efficient.

The IES is demanding the administration, through the Energy or Finance Ministry, produce evidence to support the assertion that the VRA is inefficient.

In an interaction with the media, Principal Research Analyst of the Institute for Energy Security, Richmond Rockson said the “VRA’s major problem has to do with its finances and the finances has been because VRA is providing fuel for Independent Power Producers which government is not paying.”

He added that, “all the IPPs that VRA provides fuel for are in the books of VRA but the government is not paying”. Hence, the IES expects government to rather focus on clearing the debts.

During his address to Parliament in February this year, President Nana Akufo – Addo hinted that government is considering listing the VRA as well as the Ghana Grid Company on the nation’s Stock Exchange.  

Furthermore, the Finance Minister, Ken Ofori Atta explained the government was considering a restructuring measure which will include bringing all hydropower generation under VRA and creating a thermal market under a new entity (SPV) with private sector participation, as a remedy to the alleged inefficiency at the power generating agency.