inclusion of additional assets and related debts that were transferred from VRA as at the end of 2017, and the major utility tariff review by the
PURC”.
Mr Speaker, the question also is on the related debts of the VRA. It is reported by Citi News that as of July 2016 the VRA, a State owned institution, owed banks an amount of US$1.1 billion.
Therefore, as we talk about the debts which was offloaded to GRIDCo, it is clear that GRIDCo was faced with a lot of enormity of liabilities in this regard. However, a sensitive Government; a sensitive regime, had they would have no option, at a certain time than to reduce tariffs on power because of the enormity of complaints from private sector, industries, and from domestic users.
I do not think this decision by Government, ordinarily, would have been taken, but as a sensitive regime, it had no option than to bite the bullet. They had no option than to sympathise with the policy of my friends on the other Side, who are supposed to be in a social democratic philosophy oriented system.
Mr Speaker, therefore, trying to take a decision that would cost GRIDCo in itself, brought a marginal benefit, which was relief to Ghanaians. It was not a bad decision, and I would want to reiterate that.
Mr Speaker, the concept is right. The transmission of power according to GRIDCo, had been faced with a lot of losses, and therefore, the project in itself is an adequate power transfer capability to enhance its capacity to reduce the losses and generate net export ability to the neighbouring countries.
Mr Speaker, yes, some decisions are difficult to take, and such was the decision to reduce the tariff. However, to every decision, there is a cost. It is either you weigh in benefit to cost and the cost of it is in fact what we are facing with the inability for the project to have continued.
However, overall, it was in the interest of Ghanaians for Government to have taken that decision as of that time. Therefore, the Government, and for that matter the NPP Government, needs to be applauded for their ability to recognise the feelings of the people.
Mr Speaker, having said so, it was not a political decision, but an economic decision for Government to bring the relief that Ghanaians needed.
We suffered it, but we suffered it in the interest of the Ghanaians.
Question put and Motion agreed to.