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Post: Komenda Sugar Factory Faces Utility Disconnection Over Unpaid Bills

Komenda: The Komenda Sugar Factory has been disconnected from the national electricity grid by the Electricity Company of Ghana (ECG) and its water supply cut off by the Ghana Water Company (GWC) due to unpaid bills. Mrs Elizabeth Ofosu-Adjare, the Minister of Trade, Agribusiness and Industry, disclosed this information in Parliament while responding to a question posed by Dr Isaac Yaw Opoku, the Member of Parliament for Offinso South, regarding the factory’s current status.

According to Ghana News Agency, Mrs Ofosu-Adjare explained that the factory is facing technical and operational deficiencies, which have hindered its ability to operate at full capacity. The strategic value of the factory has been compromised by a lack of capital investment, deteriorating infrastructure, and weaknesses in the supply of raw materials. The machinery and equipment at the facility have not been refurbished since 2016, exacerbating the challenges faced by the factory.

Mrs Ofosu-Adjare indicated that the government has constituted an Interim Management Committee to conduct a comprehensive review of the factory’s operations. This review aims to address the ongoing issues and facilitate the engagement of a Strategic Investor. Based on the Committee’s report, efforts are underway to procure a Transactional Advisor who will assist in bringing in an investor to inject both capital and expertise into the factory.

The Komenda Sugar Factory, with an installed capacity to process 1,250 metric tonnes of sugarcane per day, was initially projected to generate approximately 80,000 direct and indirect jobs.