Volta River Authority faces collapse

The Volta River Authority (VRA) on Friday launched its 40th anniversary celebrations in Accra warning that the authority faces imminent collapse if debts owed it are not settled promptly and realistic tariffs are not introduced.
The VRA said it could not continue making losses, adding: "until the Public Utilities and Regulatory Commission (PURC) ends its transitional plan the government should come in and subsidise VRA operations."
Dr Jones Offori-Atta, Chairman of the Board of Directors, who was speaking at the launch of the anniversary, said VRA needed to expand its operations and employ latest technological applications.
"However, all these depend on our ability to recover costs which at this moment is only at 45 per cent." Established on 26 April 1961 VRA's main function was to supply hydropower for industrial, commercial and domestic use.
Initially, this involved development of the hydroelectric potentials of the Volta River and the construction and maintenance of a nationwide grid transmission system.
Dr Ofori-Atta expressed regret that VRA has lost its position as the leading power producer and distributor in West Africa besides a depleting capacity to meet its operational costs and a mounting gap between economic and current tariffs.
Cote d'Ivoire is the largest producer of power in the sub-region and Nigeria is third. Dr Ofori-Atta said VRA has the potential of making it back into what Dr Kwame Nkrumah, Ghana's first President, envisioned - the production and supply of reliable, cheap and uninterrupted power.
He urged stakeholders to help make power production a sustainable feature to make Ghana's development plan a certainty. Dr Ofori-Atta urged government agencies and departments to pay their bills adding: "the days of free power could no longer be entertained considering the present economic circumstances facing the country."
He charged the VRA leadership to establish a department of Alternative Energy Sources that would explore the future development of wind and solar energy sources.
Dr Charles Wereko-Brobby, Chief Executive of VRA, said the lake level is not as good as expected but with thermal complementation the situation is under control. "It is in this light that we need to operate at real cost, meet our bills and expand facilities including thermal power.
"If this is not met we could face a situation worse than we did during the 1997 and 1998 energy crisis. Beyond a certain level we will be incapable."
Activities lined up for the celebrations between now and December include TV documentaries, features, talk shows, lectures, photo exhibitions, Christian and Moslem services and a grand durbar at the Akosombo Stadium.

The Volta River Authority (VRA) on Friday launched its 40th anniversary celebrations in Accra warning that the authority faces imminent collapse if debts owed it are not settled promptly and realistic tariffs are not introduced.
The VRA said it could not continue making losses, adding: "until the Public Utilities and Regulatory Commission (PURC) ends its transitional plan the government should come in and subsidise VRA operations."
Dr Jones Offori-Atta, Chairman of the Board of Directors, who was speaking at the launch of the anniversary, said VRA needed to expand its operations and employ latest technological applications.
"However, all these depend on our ability to recover costs which at this moment is only at 45 per cent." Established on 26 April 1961 VRA's main function was to supply hydropower for industrial, commercial and domestic use.
Initially, this involved development of the hydroelectric potentials of the Volta River and the construction and maintenance of a nationwide grid transmission system.
Dr Ofori-Atta expressed regret that VRA has lost its position as the leading power producer and distributor in West Africa besides a depleting capacity to meet its operational costs and a mounting gap between economic and current tariffs.
Cote d'Ivoire is the largest producer of power in the sub-region and Nigeria is third. Dr Ofori-Atta said VRA has the potential of making it back into what Dr Kwame Nkrumah, Ghana's first President, envisioned - the production and supply of reliable, cheap and uninterrupted power.
He urged stakeholders to help make power production a sustainable feature to make Ghana's development plan a certainty. Dr Ofori-Atta urged government agencies and departments to pay their bills adding: "the days of free power could no longer be entertained considering the present economic circumstances facing the country."
He charged the VRA leadership to establish a department of Alternative Energy Sources that would explore the future development of wind and solar energy sources.
Dr Charles Wereko-Brobby, Chief Executive of VRA, said the lake level is not as good as expected but with thermal complementation the situation is under control. "It is in this light that we need to operate at real cost, meet our bills and expand facilities including thermal power.
"If this is not met we could face a situation worse than we did during the 1997 and 1998 energy crisis. Beyond a certain level we will be incapable."
Activities lined up for the celebrations between now and December include TV documentaries, features, talk shows, lectures, photo exhibitions, Christian and Moslem services and a grand durbar at the Akosombo Stadium.