Energy Minister-designate, John Jinapor, has revealed that the energy sector debt has surged to $3 billion, a significant increase attributed to poor management and the rising interest on existing liabilities.
During his vetting by Parliament’s Appointments Committee on Monday, January 13, Mr. Jinapor explained that the energy sector debt was close to $2 billion when the previous administration left office.
He referred to a 2017 audit report of the energy sector, which validated that the debt stood at $2.1 billion at the time, based on an exchange rate of Gh4.4 to a dollar.
“I want to clarify that the official record, validated by Parliament, shows the debt at $2.1 billion,” Mr. Jinapor stated, dismissing claims that the debt had reached $5 billion.
He further disclosed that by September 30, 2024, the debt had risen to $2.5 billion, and a subsequent reconciliation with the Ministry of Energy, the Energy Commission, and the Electricity Company of Ghana (ECG) revealed that the debt had ballooned to $3 billion.
“As of today, the reconciled figure from official sources is $3 billion,” he confirmed.
Mr. Jinapor also referenced the Energy Sector Levies Act (ESLA), which has generated approximately GH₵45 billion over the years.
While some of these funds have been used to service the debt, he noted that they have not been sufficient to fully address the growing liabilities in the sector.