GRIDCo holds Annual General Meeting

By
Christabel Addo-GNA

Accra, Sept. 20, GNA – Alhaji Huudu Yahaya,
the Board Chairman of the Ghana Grid Company Limited (GRIDCo), has said the
transmission utility would continue to work in providing adequate
infrastructure for the growth in power generation in the coming years.

Alhaji Yahaya, who was addressing
shareholders at the seventh Annual General Meeting (AGM) of GRIDCo for the 2015
in Accra, said the under capitalisation, the cost of financing and directives
on the various financial requirements, place the Company in a vulnerable
position, which needs to be addressed.

He said Government’s efforts in addressing
the liquidity problems in the Power Sector utilities would go a long way to
release funds for GRIDCo to execute critical projects that would make a
National Transmission System robust and improve the reliability of power
supply.

Alhaji Yahaya said the indebtedness of major
customers such as the Electricity Company of Ghana and The Volta Aluminum
Company (VALCO) increased significantly during 2015, adding that the shortfall
in power supply also worsened GRIDCo’s financial state.

He said these factors in addition to the
depreciation of the Ghana Cedi worsened the Company’s financial state, and this
has resulted in increased payables and receivables and a deterioration of
GRIDCo’s working capital

Inspite of these unfavourable challenges,
GRIDCo managed to pull a total earnings of GH¢ 472.345 million and a net profit
of GH¢ 44.797 million in the year under review contrary to the net loss of GH¢
41.50 million achieved in 2014.

He said until 2014, GRIDCo recorded a good
financial performance for four consecutive years.

Mr Yahaya said the Company has been working
with 12 prospective entrants into the Renewable Energy Sector and has also
collaborated with the Energy Commission to publish the Renewable Energy Grid
Code, to serve as a guide for all interested parties.

He said GRIDCo was also working to
commercialise part of its fibre optics to boost telecommunication in Ghana and
within the sub-region.

Mr William Amuna, the Chief Executive
GRIDCo, said the Company fully supports 
government’s vision of making Ghana a net exporter of power by the year
2020, adding that a number of projects are also being undertaken to strengthen
the transmission grid, in order to enhance its capacity and efficiency to
transmit additional power to be connected to it.

He said some of the completed projects such
as the replacement of obsolete equipment with modern and more effective ones
and installation of new transformers have helped to reduce its transmission
losses.

The transmission loss for 2015 was 3.79 per
cent compared with the 4.32 per cent recorded in 2014.

Mr Amuna said GRIDCo was instrumental in the
connection of the Karpowership barge to the grid, and that the integration of
this power supply and that of the Ameri Plant contributed immensely to address
the generation shortfalls.

He said the country’s section of the
Ghana-Togo-Benin Interconnection segment of the 330 k V West African Power Pool
(WAPP) Coastal Backbone Transmission Line, was completed and energised in
November 2015.

He, however, expressed worry about the
current aging population of the Company’s skilled manpower, saying efforts were
being taken to address the situation and has commissioned a well-equipped
gymnasium within the work environment, as a way of achieving a work-life
balance for employees.

Mr John Abu Jinapor, the Deputy Minister for
Power, commended GRIDCo for the hard work and dedication to duty, and gave the
assurance that government intends to consolidate all the debts of Utility
companies so that they could be effectively managed as and when funds were made
available.

He urged GRIDCo to intensify their public
education on the current high cost of producing power and to make the public understand
the implications hence the need to be prepared to bear the cost for sustainable
supply.

GNA

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