‘Dumsor’ looms over $12M WAPCo debt — Jinapor

On August 24, 2024, 10:14 AM

Ranking Member of Parliament’s Mines and Energy Committee, John Jinapor, has warned that Ghana may face widespread power outages by September if it does not settle a $12 million debt to the West Africa Gas Pipeline Company (WAPCo).

Mr. Jinapor noted that WAPCo has threatened to cut off gas supplies from Nigeria starting September 6.

“So, that is a threat we are facing, if we do not pay this 12 million by the 7th of September, they would shut down the pipeline completely for both gas from Nigeria and reverse flow of gas from the West to Tema,” he said.

Consequently, the Minority in Parliament has announced plans to summon the ministries of energy and finance to address urgent questions regarding the debt and also the growing judgment debt between Ghana and the oil giant, Trafigura.

This comes after oil conglomerate Trafigura, seized one of the country’s most important commercial properties, the Regina House, in London, following the failure of the government to pay up a $134 million judgment debt.

For four years Trafiguara has been unsuccessful in getting the government of Ghana to pay up the judgment debt awarded to the energy firm after the abrupt termination of a power purchase agreement.

This situation forced Trafigura to secure another judgment in the United States courts which awarded a mandatory interest on the default of 111.4 million dollars which remains the arrears to be paid by the Republic of Ghana.