The Volta River Authority (VRA) has entered into agreement with a number of local banks to arrange a $30m facility to enable it pay for power purchases from July last year to date which totals $25m.

The VRA says it would ensure that there is no recurrence of the pile of debts for power imported from neighbouring Cote d’Ivoire to meet the shortfall in supply due to the low level of the Volta Lake this year.

VRA has paid a total of $45 million between November 2001 and July this year to the electricity company of Cote d’Ivoire to defray all of the outstanding debts for power importation from January 2000 to July 2001.

The settlement fulfilled the commitment made by president Kufuor to his Ivorian counterpart, Laurent Gbagbo that his (Kufuor’s) government would settle the debts it inherited from the past administration within a year.

Analysts believe the settlement of the debts by the NPP government as promised, would go a long way to strengthen the commercial relations between VRA and the Compaignie Ivoriene du Electricity (CIE).

VRA officials say the authority had been able to meet the country’s full power supply this year, although the Akosombo and Kpong dams could only produce about half of the country’s needs. VRA’s indebtedness to CIE, which had built up since the 1998 power crisis had prevented the Authority from making full use of the power exchange agreements that, had existed between the two countries since 1983. This, delayed financing agreements to construct the Prestea-Obuasi transmission line which would have enable the Takoradi Thermal Power Plant to operate at full capacity and reduced or eliminate the importation of power.

VRA is currently undertaking the construction of the Prestea-Obuasi line using its resources.

The project, the cost of which is estimated at $8 million would be completed by April 2003. it is to ensure reliable supply of power to all the major mining companies and industries in the Western Region.