• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, July 9, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

ECG’s Debt outstanding to Bui Power Authority in excess of US$386 million as at 2019

August 13, 2021
Stephen M.Cby Stephen M.C
in Extractives/Energy, Sub Top Stories, Sub Top Stories2
1
ECG’s Debt outstanding to Bui Power Authority in excess of US$386 million as at 2019

Bui dam hydroelectricity project

Audit checks on the Bui Power Authority (BPA) have revealed a gargantuan debt outstanding to the company by the Electricity Company of Ghana to the tune of US$386,878,949.46 as at year-end 2019.

To this effect, the Auditor-General’s report notes that this is due to delays in the settlement of debts by the Electricity Company Ghana (ECG) to BPA. The audit report shows that monthly invoices to ECG are not settled within the required sixty (60) days, thus resulting in the accumulation of such huge outstanding debt owed the Authority.

“Per Section 8 of the Power Purchase Agreement between the Ministry of Energy and the Electricity Company of Ghana (ECG) for Electrical Supply from Bui Hydroelectric Plant, payment of energy produced by the Seller and sold to the buyer as provided for in the monthly billed invoices shall be effected within sixty (60) days of the dispatched of such invoices in US Dollars or its equivalent in Ghana Cedis.”

Auditor General’s report

The report states that the repercussions of such continued delays or breaches of agreed payment terms could negatively impact the cash flows of the Authority.

RelatedPosts

Ghana Poised to Reap Big from Soaring Gold Prices

E&P Defends $100M Azumah Mine Acquisition, Rejects Allegations

Ghana’s IMF Programme Goes Off Track

Meanwhile, given the Authority’s financial report from 2015 to 2019, it shows an accumulated revenue of US$448,249 generated from the sales of electricity and cost of sale of electricity amounting to US$103,144. Profit before tax within the same period also amounted to US$178,052.

That notwithstanding, the Auditor General recommended that management should ensure timely collection of debts in order to improve the liquidity position of the Authority and to enable it carry out its operations effectively.

Fred Oware Board Chairman of Nuclear Power Ghana NPG
Fred Oware, CEO, Bui Power Authority
Other issues raised by the Auditor General

In response to these assertions, the management of ECG indicated that “it is actively involved and engaged with the Ministries of Energy and Finance in developing a comprehensive solution of the Energy Sector Debts. The debt including the amount owed by ECG has been acknowledged by the Government of Ghana and measures including the ESLA are being developed to address this.”

Also, the report shows that GRIDCo is indebted to Bui Power Authority to the tune of US$41,010,518.71 (equivalent to GHS159,500,536.38) from 2013 to the time of the audit in 2019.

Nonetheless, the Bui Power Authority is also alleged to be indebted to GRIDCo in the sum of GHS5,658,577.58. Meanwhile, the report shows that the Authority has since 2013 avoided the disclosure of this indebtedness in its accounts.

According to the report, the matter is pending a ruling by the Public Utilities and Regulatory Commission (PURC). That said, the Auditor General’s report recommends that the management of Bui Power Authority should make stringent efforts to ensure early ruling on this matter by the PURC.

Another issue raised in the report is in respect of the Authority’s failure to recognize a provision for the likely decommissioning of the dam in the future. In this regard, the audit report recommends that the Authority should get a written representation from government on its commitment to fund future decommissioning of the dam should the need arise.

Although the Authority’s financials reflect a positive outturn, the Auditor General’s report highlights that, declaring excessive profits without considering future decommissioning costs of the dam may result in the diversion of funds for such a purpose being used to finance other expenditures.

READ ALSO: Deputy Finance Minister justifies rise in Inflation

Tags: Auditor-GeneralBui Power AuthorityDebtECGPower Purchase Agreement
Please login to join discussion
Previous Post

Deputy Finance Minister justifies rise in Inflation

Next Post

Media hype of crime doesn’t denote increase in crime- ACP Kwesi Ofori

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Debby Reveals Professionalism Fuels Female Musicians
Entertainment

Debby Reveals Professionalism Fuels Female Musicians

July 9, 2025
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Africa

Mass Jail Sentences Deepen Tunisia’s Political Crisis

July 9, 2025
Mustapha Gbande, Party, President.
General News

Every NDC Member Is Better Off Today – Gbande

July 9, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Mass Casualty Incidents Besmirch Gaza’s Aid Struggle

July 9, 2025
GoldBod CEO Champions Value Addition in Mining
Extractives/Energy

Ghana Poised to Reap Big from Soaring Gold Prices

July 9, 2025
Hon. Haruna Iddrisu, Ghana's Minister for Education
General News

Ghana Moves to Overhaul Scholarship Regime with New Bill

July 9, 2025
Debby Reveals Professionalism Fuels Female Musicians
Entertainment

Debby Reveals Professionalism Fuels Female Musicians

by Esther Korantemaa OffeiJuly 9, 2025
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Africa

Mass Jail Sentences Deepen Tunisia’s Political Crisis

by Lawrence AnkutseJuly 9, 2025
Mustapha Gbande, Party, President.
General News

Every NDC Member Is Better Off Today – Gbande

by Silas Kafui AssemJuly 9, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Mass Casualty Incidents Besmirch Gaza’s Aid Struggle

by Comfort AmpomaaJuly 9, 2025
GoldBod CEO Champions Value Addition in Mining
Extractives/Energy

Ghana Poised to Reap Big from Soaring Gold Prices

by Prince AgyapongJuly 9, 2025
Hon. Haruna Iddrisu, Ghana's Minister for Education
General News

Ghana Moves to Overhaul Scholarship Regime with New Bill

by Evans Junior OwuJuly 9, 2025
Debby Reveals Professionalism Fuels Female Musicians
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Mustapha Gbande, Party, President.
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
GoldBod CEO Champions Value Addition in Mining
Hon. Haruna Iddrisu, Ghana's Minister for Education
[/vc_row_inner]

Recent News

  • Debby Reveals Professionalism Fuels Female Musicians
  • Mass Jail Sentences Deepen Tunisia’s Political Crisis
  • Every NDC Member Is Better Off Today – Gbande
  • Mass Casualty Incidents Besmirch Gaza’s Aid Struggle
  • Ghana Poised to Reap Big from Soaring Gold Prices
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.