Business in Ghana

We Understand the issues that make the News

Posts Tagged ‘Scaroni’

IMF Might Need Some Answers. GNPC, GNGC, ENI and Due Dilligence

Posted by Business in Ghana on December 14, 2014

By Sydney Casely-Hayford

The news that Ghana’s Parliament approved the deal on the oil and gas project with ENI of Italy could raise important questions related to the Country’s program with the IMF.

There are implications for the budget, even as the price of crude continues to dip below the numbers used to estimate oil revenues to fund the Budget and other sectors, especially social safety nets might be compromised.

Whether subsuming GNGC into GNPC will affect the share of carried and participated interest of GNPC in its contract with ENI and whether there will be an impact on public and publicly guaranteed external debt is a big question.

Parliament already did the unthinkable and passed the $8billion contract with ENI speedily as it does when under pressure from Government to shore immediate cash demands.

The IMF program is struggling to finality, principally on a few key issues. One, the total value of Government debt is still open to debate and whether the composite debt must include liabilities of certain key parastatals such as VRA, GNPC and TOR must still be of concern. As also the debt of key Municipalities and Metropolitan Assemblies.

Two, the projected revenues are a problem with periodic budgets consistently below target and the payroll envelope is still threatening to engulf revenues.

As Parliament ducked the minority call for a stay in loan approval pending the $700million facility in court re: GNPC, the decision begged the question whether anyone had taken a closer look at ENI on the world scope. Read the rest of this entry »

Advertisements

Posted in Oil and Gas, Sydney Casely-Hayford | Tagged: , , , , , , , , , , , , , | Leave a Comment »