Govt to allocate US$283 million to GNPC for its Equity Financing Cost – Minister

Majority leader of Parliament Osei Kyei-Mensah-Bonsu has indicated that the Government will allocate some resources to various sectors in the Energy spectrum to boost equity and revenue mobilization in the 2021 fiscal year.

This is part of the recovery measures the government will be putting in place to help the economy gain its grounds after it suffered some hitches due to the outbreak of the COVID-19 pandemic.

Presenting the 2021 Budget Statement in Accra, the Minister stated that about 30 per cent of the benchmark revenue of $180.81 million will be allocated to the Ghana Petroleum Funds to complement its operations especially in the downstream.

“In line with the PRMA, we would like to propose the allocation of the petroleum revenue as follows: allocate US$283.00 million to GNPC for its Equity Financing Cost (US$179.33 million) and share of the net Carried and Participating Interest (US$103.67 million); allocate 70 per cent of the Benchmark Revenue of US$602.70 million (i.e. US$421.89 million) to ABFA; allocate 30 per cent of the Benchmark revenue (i.e. US$180.81 million) to the Ghana Petroleum Funds, and allocate US$126.57 million of the Ghana Petroleum Funds amount to the Ghana Stabilization Fund and US$54.24 million to the Ghana Heritage Fund,” he explained.

However, total Revenue and Grants for 2021 is projected to rise to GH¢72,452 million, equivalent to 16.7 per cent of GDP, up from an outturn of GH¢55,132 million, equivalent to 14.3 per cent of GDP recorded in 2020.