Government to pay VRA debts owed local banks and suppliers

Government is taking steps to pay some GH¢2.2bn debt, which the Volta River Authority, VRA, owes local banks and suppliers. 

Under the arrangement, VRA’s legacy debts will be paid from a special account opened to receive proceeds from the Energy Sector Levy. 

Fifty percent of the funds accruing under the Power Generation and Infrastructure Support sub-account under the Energy Sector Levies Act will be used to retire the legacy debts. 

A statement issued by VRA said government would use the remaining 50 percent of funds from the levy plus the current enhanced business as usual receivables of the VRA, all of which is to be escrowed into a centrally managed account, to service trade and other creditors of the power sector.

DAILY GRAPHIC