We have not taken any new Litasco loan without parliamentary approval – GNPC

The Ghana National Petroleum Corporation (GNPC) has debunked assertions that it had secretly contracted a loan facility with Litasco without seeking parliamentary approval.

According to the Corporation, that information is false and inaccurate.

In a statement to clarify the claims, it said the loan facility currently under negotiation is not a new loan by GNPC or the Government of Ghana (GoG).

"Instead, it is a re-financing arrangement for an existing debt that is incumbent upon ECG and the Government of Ghana to settle, with GNPC as counterparty."

It added that the purpose of this arrangement is to ensure the uninterrupted supply of power to the country.

“Once these negotiations are completed, the final negotiated terms will be reviewed by the GNPC Board, the Minister for Energy, and the Minister for Finance. The final documents will then be submitted to Parliament for consideration,” GNPC said.

“As part of its 2023 Work Program submitted to the Parliament of Ghana and at the behest of the Minister of Energy, GNPC sought approval for a facility amounting to US$620 million from LITASCO.

This facility's purpose is to refinance existing debts owed to LITASCO and Karpowership by the Government of Ghana and ECG, as well as to provide guarantees to Karpowership for the continued power supply to ECG," the Corporation explained.

It continued, "The Mines and Energy Committee of Parliament conducted a detailed review of this proposal and recommended that GNPC submits the final terms of the loan facility, following further negotiation of the term sheet, to Parliament for consideration.”

GNPC added that it has been transparent in its intentions and actions regarding the Litasco facility.

SSD/MA

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