basically SGR is a debt burden it was built for political reason and no economic thinking behind it
Mkenya2019: I don't need to ever see your bank account to know you're doing badly or not. You are ignorant.it took me exactly 1hr to understand your power sector.Now you've moved to SGR.If you have trouble understanding Ghana, how can you understand Kenya issues.Regale me with your begging escapades in Nigeria instead
whiles we are celebrating your foolishness because you are commenting on a company you dont know
let me help you save your image VRA does not signpower purchasing because it does not buy power.
kikuyu1: So, listing will magically cure all their problems as investors lose hard earned money buying a dud and VRA' s balance sheet will instantly go black and previously signed iron clad supply contracts with tough penalties would be nullified -HAHAHA! I doubt such conmanship would fly even in WA. The perfect example of the "Katanka mindset!"
vaxx1: one very interesting about you is, you are a professional idiot. how do you calculate such a figure without an official back up. it is like me giving you an estimation cost of your stupidity without placing you in psycho..
Anyway take the lesson
You are simply an idot ...VRA is the mother of them all, both sister company tap from VRA for their customers . so in a little exercise , whatever ECG sells, it is from VRA . ECG is not generating its own power , Gridco is for power extention.....ECG buys from valco and then to supplier.... all other extention company are owned by VRA.
so let's talk about your non performing loan? how do you intend to pay it.
Your goverment have failed to secure another loan from china when The current SGR was only able to give an annual revenue return of 10 billion shillings despite using up 12 billion shillings to finance its annual operations in the same year. a liabilities of 2 billion shilling Thbat means innocent taxpayer of kenya has hence had to part away with one billion shillings every month to finance the SGR that brought a loss of 2 billion at the end of the year not forgetting that it was expected to also repay a monthly servicing of its loan which amounts to 36 billion shillings.
so logically we know For the SGR to be viable, it needs to make returns of over 48 billion yearly to sustain itself and repay its loan. somwhere will thay come from
I am of The belive The SGR should have been in a position to sustain itself .
Mkenya2019: I don't think you understand your country power sector..at the apex is VRA & IPPs..then 3 electricity distributor including ECG as the disco..then GRIDco who own most of tranmission network.VRA still sell power to the big customers in minning leaving the likes ECG to share about 4m customer in Ghana.I estimate each sell about 500-1000MW or less - about 1500mw divided by 3 every day.If you assume that ECG sell about 2,000 GWH annually at unit cost of 14-20 cent USD per kWH...total revenues of ECG is about 300-400M USD.If you remove the expense of distributing that power including shocking systems loss of 20%, I estimate the expense are huge.I would be very surprised if ECG ever makes profit or at best 5m dollars.We know the company is in red because Ghanians don't pay for power worse their gov.So if you were to sell me such a company with very tiny margins and uncollected debt..I would at best give you 100-200m dollars..say P/E of 10-20.
you are dumb
shut up and receive teaching
VRA is a producer, it sells power to ECG. VRA assets is above 10 billion dollars.
ECG buys power from producers like VRA and IPPs
VRA and ECG pays gridco for transmitting or receiving over their lines
ECG sells over a billion and five dollars worth of power annually
ECG can easily pay it debt because it is a valuable company. THe debt is owe by government. This is what a viable company is
SGR isnt viable because it is making loses and cant pay it loan.
Mkenya2019: Good example of a futures contract is your IPP take or pay with VRA. International business and contracts are not a joke.They are not heard in Accra.. possibly London.No escape.No short cut.No negotiation.Its just paying.Go ahead and cancel them..and see if your gold won't be seized.
We will still make use of what ever power we produce or have signed to take
Mkenya2019: 3B dollars for an electricity distributor that sells about 1000Mw to about 1m customers and is highly indebted is crazy.Who did the valuation.JP Morgan or CITibank or some Ghanian Yahoo boy.I would estimate it's value at about 50m dollars.Go back to the Nigeria backstreet university and ask for your real degrees.. Bachelor of Arts in street begging and related hustle.
Mkenya2019: It depends..if you signed a future contract, you're done.KQ for example got into trouble because they bought fuel futures at 140-200 dollars per barrel and so even when oil tanked to 20 dollars , KQ still buy fuel at crazy rates.There is no escaping.KQ been through hell since 2014.The same your for IPP.No escaping international contracts.Whatever you do in Ghana is null and void.Wait till creditors seize your embassies.Nigeria has 9 billion dollars bill waiting execution.
we sign deals that are to our benefit
we dont do future contracts here the world market is already unpredictable enough
vaxx1: ECG be listed on the bourse today, it would be ranked among the best-capitalized companies on the stock market with a market capitalization of about GHc 15 billion. If the market values the company significantly above its book value, this premium would make it's market capitalization even higher....it is just that simple, are you actually a graduate ? The dept payment issue isn't the big deal . most of the ECG debt is owed by VRA which owned Ghana gas . they are basically local debt which goverment can pay right away ...
government have already listed a bond to pay them off
Mkenya2019: You may own part of the pipeline but you signed to buy Nigeria gas whether you need it or not..so even with your gas coming on board..you still pay Nigerians.
Mkenya2019: I thought VRA is the mother of ECG and Northern one.You cannot list your way out of liabilities or trouble.In Kenya they won't allow you to list if you haven't been profitable for 5yrs.You think you can offload a thud to the stock market.Maybe you clean up their balance sheet first by first paying off 30yrs of projected revenues from thermal plants so they can dismantle them and also ask Ghanians to pay for used power esp Ghana government that owes lots of money to ECG & others.Youre in big trouble.Prepare 850m dollars to pay IPPs and maybe 250M to N-Gas annually - you can use the extra power to fry banku or shoot space missiles.. nobody cares you got to pay...for extra 2500mw of idle capacity.
Mkenya2019: Which is one worth 3B..the mother VRA or the child ECG. How much liabilities do they carry. I read they are technically insolvent.Who will buy a stake in something that has 30yr pay or take contracts with Independent Power Producers? And not only that you signed future contract with Nigeria gas so even if you produce your own gas you'll pay N-Gas every year.These are not easy to wriggle out contracts...the one you tried you'll hear more of it in international courts
someone who knows business
ECG is worth 3 billion dollars VRA is worth 10 billion dollars
ECG only owes VRA VRA only owes Ghana Gas
government has already floated a bond to pay all those debts and has proceeded to list them on Ghana stock exchange to make them more efficient
Mkenya2019: Nearly everything in Kenya is by default more impressive than what you see in West Africa..of course South and North Africa are better than us..it would be delusional to deny the obvious.
Mkenya2019: Arrest your double digit inflation, depreciating currency, debt rising like crazy despite inflating GDP and figure out how to pay 850m dollars next year to your idle thermal power plants before you dream about ports and railway.The first business of incoming gov in 2021 will definitely be to invite IMF for bail out 17th.Aim for Beyond Aid..we got there about 15 yrs ago.And I don't Google stuff about Kenya..there is no land for Qataris..we don't even have enough for ourselves.
we already have the money to pay oo
we are building and reviving companies like crazy
soon we will have to expand our energy output again. our excess capacity is not a problem.
Logobenz0: Hahahahahahahahahahaha if Nigerians are useless then kenyans are clueless and hopeless very foolish starving creatures renting out their ugly shameless wives and daughters all because of poverty and hunger the most useless and bombastic creatures on Earth
visionless kenyans they are the backwater of human establishment
rvp20182: Amref Health Africa is the continent’s leading health development organisation , founded and headquartered in Kenya . Amref Health Africa began 60 years ago as the Flying Doctors of East Africa to provide critical medical assistance to remote communities in East Africa. Today, Amref Health Africa works with the most vulnerable African communities through its country programmes in Ethiopia, Kenya, South Sudan, Tanzania and Uganda, and its Southern and West Africa regional hubs
1) SGR - is on fire - set to achieve about 5M metric tonnes this year. That is DOUBLE LAST YEAR.
A half-year report by the Kenya Ports Authority (KPA) indicated that the Standard Gauge Railway (SGR) freight train had set a new all-time record. KPA declared that 2,019,002 metric tonnes of cargo had been transported via the SGR freight trains between January and June 2019.
Interestingly, the report revealed that a total of 2,918,973 metric tonnes of cargo was transported to the Kenyan capital in the entirety of 2018 which is just 899,971 metric tonnes shy of the record achieved after just 6 months in 2019.
1) Tea dropped 17% this year - thanks to problem in Pakistan (similar Ghana hyperinflation leading to currency devaluation)
Oct 7, 2019 - Earnings for small-scale tea farmers in Kenya declined by 18.6 per cent following an oversupply in the global market, which caused a
this year is already over and youve done 2.7 million metric tonnes SGR has spent 12.5 billions shillings and has only received 5 billion shillings
thats is an operational loss that will sink it into more debt
rvp20182: Precisely. If they visited countries before their energy crisis - they won't be crying now - excess capacity - and they even signed more gas contracts that will be bitting them. Imagine next year they are going to pay 850M dollars for supply of AIR.
we signed them because we need them
I will rather spend my brain on finding solution to utilising all the resources i have made available to myself than wasting my time and brain not having them.
you are crying for someone who have and have them in excess you are funny ooh cry over your poverty
rvp20182: Pray for Oil. Pray for Aluminum. Pray for Gold. Pray for Cocoa. AND PLEASE PRAY FOR CHINA - because if China loses appetite for minerals - GHANA COME CRASHING AGAIN.
And come learn from Kenya how to survive without either - by having a diversified economy.
rvp20182: Opinions are dime a dozen. But Ghana electricity is on a debt crisis now. The energy debt crisis is sending you back to IMF BAILOUT NO 17
The IMF forecasts the debt stock will reach 63% of GDP at the end of December, from 51% in January. Not all of that is due to the energy contracts. A bailout of the banking sector has also added to the debt as investors fear a repeat of excessive spending in the run-up to elections, of which the next is scheduled for December 2020.
Finance Minister Ken Ofori-Atta, who will present the 2020 budget next week, has warned that the sector’s “unsustainable” liabilities may amount to $12.5 billion -- about a fifth of gross domestic product -- by 2023 from about $2.5 billion in January.
This is Bloomerg a week ago.....predicting doom again.
infact government has cleared a major part of it with bonds when we decided to restructure the sector. Bailing out our banking sector is a good clean up to situate them for the growth we are about to attain.
the Kenyan Economy is in a mess that is going to drive 53 million Kenyans into poverty. No one wants to invest in any productive capacity in Kenya because Kenyans either lack the skills or produce no raw material to support.
the only thing Kenya keeps getting are aid agencies
rvp20182: You omitted the date.Mar 17, 2008. Yes Kenya began at very low base of 15% of electrification - and we have moved now to nearly 80% in about 10 yrs - the fastest electrification rate in the world - and we will achieve REAL TRUE universal access way before you get there.
As for termination IPPS - you got jokes - you'll suffer SERIOUS CONSEQUENCES - concentrate on financing your underfunded energy sectors choking with debt - and pay for N-GAS
Who builds thermal plants of 3,000MW in this century?
serious countries will to industrialise are the ones who build thermal plants in excess of 3000MW
remember turkey
no one owes N-GAS they can even supply us 50 scft of gas per day
rvp20182: The 'lying' propaganda was around 2014 when KPLC had like 2M customers - now the number has reached nearly 8M customers - and growing annually at 1M plus new customers. kenya is nailing electricity acess - the least you talk about it the better for your poor mental health.
Now when you talk about idle expensive thermal power - you do realize you have like 2,500MW idle power - excess capacity should maybe be around 20% - and you're paying huge price - and have started defaulting & terminating contracts -
As regard renewable energy - kenya is star there - we are retiring diesel plants - and right now - no africa country has our mix of renewable electricity - hydro, geothermal, wind, solar -
As for VRA ( whatever that mean) and our SGR - you're just out of IMF bail out no 16. Next year - we will see another IMF bail out.
If VRA is that rich - why are your terminating international contracts - and attracting the ire of the americans.
we can solve our excess power problem by just making VALCO work at full capacity
that is why we are creating an opportunity for them to gain market share in China
worry about your debt that is a real problem swallowing your shitty economy
Foreign Affairs › Re: Kenya Is Ahead of Nigeria In All Aspect (Facts Don't Lie) by Just30: 9:41pm On Nov 20, 2019
