The West African Gas Pipeline Company, WAPCo, has vowed to cut supply to the Volta River Authority (VRA) by Friday if the latter fails to pay debts owed it.

WAPco was reported on Monday as planning to reduce the volume of gas it supplies through the 678 kilometer stretch of pipeline to Ghana.

Managing Director of WAPCo, Walter Perez says the company has regularly engaged Ghana’s Public Utility Regulatory Commission, VRA, the relevant ministries and the highest levels of government to find a solution to the situation before it reaches crisis level.

“Unfortunately, these efforts have not achieved the desired results”, he said.

After almost a year keeping quiet about the problem, the foreign managers of the company are now taking government to task and they are doing it publicly.

Walter Perez criticized government’s handling of VRA’s debt.

“Ït is unfortunate that the VRA debt situation has been allowed to deteriorate to the point where it now jeopardizes the existence of WAPco as a company”

Not even President John Mahama was spared.

President Mahama

Although they reserved some commendation for President Mahama for his attempts at restructuring the power sector, Walter did not mince words in emphasizing that swift action is needed in the next 24 hours.

“If he [President Mahama] is not able to do that, then things really fall apart…leaders are paid to take tough calls” Walter Perez told journalists.

The debt has been piling up since August 2014. Out of the $180 million debt, the Volta River Authority owes $103 million while other power entities owe $78 million.

“We would loved to be paid in full…but we really need to have some credible payment plan”, Walter explained negotiation options available.

According to the managing director of WAPCo, the company received a formal notification a month ago from VRA’s gas shipper, that deliveries to VRA should be curtailed, effective from October 16^th, 2015.

Explaining how Ghana has gotten into the crisis, Deputy Head at the Africa Centre for Energy Policy, Benjamin Boakye revealed that Ghana negotiated a bad deal for gas with WAPco and N-Gas.

While N-Gas sells gas at less than $3 per unit, transporting it through the WAPco’s gaspipe line cost $5 per unit, Boakye revealed.

According to him locally produced gas from Ghana Gas Company at Atuabo in the Western region is also expensive at $9 per unit.

The energy expert explained that thermal plants in Tema rely on gas from Nigeria and quantified the loss Ghana could suffer if gas from WAPco is cut.

“400 megawatts will be lost” he dropped the bombshell. He explained this amount of power is enough to power Accra, Ghana’s capital.