The financial crisis of the Volta River Authority (VRA is deepening and if Government fails to put emergency measures Ghanaians cannot be assured of regular and adequate power supply.
By the end of former President Kufuor�s administration, the VRA was indebted to the tune of US$1million or more.
It was then expected that the sale of the company�s fibre optic network to Vodafone would make available substantial amounts of money to ease the indebtedness of the VRA.
Unfortunately, proceeds from the sale fibre optic network have still not been paid to the VRA. The final transaction price for the sale of the fibre optic network as agreed by both parties was US$ 45.73million.
Voltacom, a wholly owned VRA subsidiary was created to manage VRA telecommunications network and to engage in the communalization of the excess capacity of the fibre optic network.
Of the total of 18 fibre cores, the VRA uses eight for its power systems operations. In addition to the non-payment of proceeds from the sale of the fibre optic network, mining companies owe the VRA GH�15,429,667.71. Prestea Gold Resources Ltd owes the VRA as much as GH�10,706,831.82. The Ghana Consolidated Diamonds Ltd owes GH�4,454,409.68 whiles Dunkwa Continental owes GH�268,426.21.
Many government departments and agencies are also heavily indebted to the Electricity Company of Ghana which has failed to meet some of its financial obligations to the VRA.
VRA sources say that the Authority cannot provide long-term solutions to its problems without a substantial tariff increase and/or the support of Government to purchase its crude oil requirements.
However, there are strong indications that any tariff increases will be resisted. A member of the Committee for Joint Action (CJA) has said that tariff increases cannot be justified especially when drastic action has not been taken to collect monies owed to the VRA.
Members of the public opposed to tariff increase argue that it will only pass on the inefficiencies of the utility companies to consumers as costs.
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