ACCRA: GHANA is making frantic efforts to finance a plan aimed at paying for gas supplied to the Volta River Authority (VRA) and the power producers in the event of a cash fall, local daily newspaper reported.
This is part of plans to avert rising power crisis. According to the publication, Ghana National Petroleum Corporation (GNPC) is working on a fall-back financing plan widely believed to boost the production of gas in the country.
GNPC Import and Export Manager, Mr Denis Baidoo, is quoted as saying his organisation was negotiating with some banks to issue pre-arranged letters of credits to defray debt arising from the inability of the VRA to pay for gas received.
“Between GNPC and Ghana Gas, there is an arrangement in place. We have something we call standby LC, which means in the event of default by Ghana Gas in payment, we will call on the LC to effect the payment,” Baidoo was quoted as saying. Ghana has been experiencing acute shortage of energy, mainly electricity, gas and oil.
SOURCE: CAJ NEWS AGENCY