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Parliament Approves $80m Cal Bank Loan To Purchase Pre-Paid Meters
 
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30-Jun-2016  
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Parliament has approved a Cal Bank loan facility of US$80 million for the purchases of pre-paid meters.

This follows an Executive approval of the said loan facility about in May 2016.

The approval comes at a time when the government is struggling to address errors in the billing of consumers of electricity, especially, those using the ‘Usain Bold’ pre-paid meters.

The credit facility follows an agreement between the Government of Ghana and Cal Bank Limited.

The Smart Pre-paid meters and accessories would be distributed by the Electricity Company of Ghana Limited.

The draft contractual agreement between the Government of the Republic of Ghana and Cal Bank has been prepared to that effect, a copy of which has been sighted by Kasapafmonline.com.

The said document was drafted by the Ministries of Finance and Power and jointly signed by Hon. Cassiel Ato Forson and John Abu Jinabor, both deputy Ministers of the respective ministries, ans is currently before Cabinet for approval following which it would be sent to Parliament for same.

Government is confident that “the procurement of the prepaid meters under this facility would contribute towards ECG’s drive to reduce commercial losses, increase cash flow for smooth operation and maintenance of the network, and eliminate indebtedness of MMDAs since most of its revenues would be collected upfront”.

“Furthermore, taking into consideration the number of new thermal plants to be commissioned, coupled with the diminishing role of hydro in the power generation mix, Government intends to position ECG to effectively collect its bills from customers timely, and therefore the need for this project”, the draft document in part read.


 
 
 
Source: kasapafmonline.com
 
 

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