Prepaid-meters
Prepaid-meters

The information was contained in a letter-referenced OP/CA.1/V.6 dated 17th May, 2016, approving the deal at a period when government itself is struggling to address errors in the billing of consumers of electricity.

Prepaid-meters
Prepaid-meters

President Mahama has authorized the Government of Ghana to enter into a Credit Facility Agreement with Cal Bank Limited for an amount of US$80million for the procurement of Smart Pre-paid meters and accessories for the Electricity Company of Ghana Limited, the said letter said.

It is indicated that the draft contractual agreement, sighted by News Ghana, is between the Government of the Republic of Ghana and Cal Bank, was drafted by the Ministries of Finance and Power and jointly signed by Hon. Cassiel Ato Forson and John Abu Jinapor, both deputy Ministers of the respective ministries.

It is before Cabinet for approval.

According to the document, taking into consideration the number of new thermal plants to be commissioned, coupled with the diminishing role of hydro in the power generation mix, Government intends to position ECG to effectively collect its bills from customers timely, and therefore the need for this project.

According to the draft document, the  that the pre-paid meters when procured would contribute towards ECG’s drive to reduce commercial losses, increase cash flow for smooth operation and maintenance of the network, and eliminate indebtedness of MMDAs.

However, if the contract is approved by Cabinet and Parliament as well, Government will then enter into an on lending agreement with the Electricity Company of Ghana (ECG) to set an account into which an agreed percentage of revenues will be deposited for the purpose of debt service payment, as per the reason for the action.

Source:  Newsghana.com.gh

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