The Ministry of Finance is expected to write off about $120 million of the $400 million legacy debt owed by the Tema Oil Refinery (TOR), Managing Director of the refinery, Edmund Kombat, has disclosed.
According to Mr Kombat, the proposed write-off forms part of efforts by government to address TOR’s longstanding financial obligations and improve the refinery’s financial position.
He said the remaining debt would be addressed as part of measures to restructure TOR’s finances and position the state-owned refinery to operate more sustainably.
The TOR Managing Director made the disclosure while discussing the refinery’s financial situation and government’s plans to revive its operations.
The move is expected to provide some relief to TOR, which has accumulated significant legacy liabilities over the years.
Mr Kombat has also outlined plans to increase TOR’s crude processing capacity as part of efforts to strengthen domestic refining and reduce Ghana’s dependence on imported petroleum products.
We came here there was a lot of dispondency, people were bringing products here and they cannot find it.
None of the Bulk Distribution Companies and Oil Marketing Companies were willing to keep their products with us because they were not getting back the full quantity
Mr Kombat explains how he turned around TOR from a loss making to a profitable entity.
That is how we started building our Internally Generated Funds(IGF), he added
It is through the storage, refinery and product transfer that we make money, he said
Once the frist batch of BDCs brought their produts here and there was nothing that happened to it news went round the sector adding that is how the transformation story began.
