Josiah
The management of the Electricity Company of Ghana (ECG) is set to meet with Sunon Asogli Power (Ghana) Limited, an independent power producer, on December 8 to discuss payment arrangements for a $60 million debt owed to the power producer.
Sunon Asogli Power had temporarily shut down operations on December 4, citing the government’s delay in meeting its financial obligations to power plants. However, the power producer postponed the shutdown decision for a week after receiving government confirmation that the debt would be settled.
The government’s debt to Independent Power Producers (IPPs) has been a long-standing issue, with reports indicating an outstanding amount of approximately $1.6 billion as of July 2023. The delay in payment has raised concerns among IPPs about the financial viability of their operations.
Sunon Asogli Power, in acknowledgment of the government’s assurance, stated, “Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche $30 million to be paid this week and the second tranche in the week of 11th December 2023.”
The upcoming meeting between ECG and Sunon Asogli Power will focus on the methods and timelines for settling the government’s debt to the power producer. The IPPs, including Sunon Asogli Power, have expressed discontent with the recent 1.52 percent reduction in the electricity tariff announced by the Public Utilities Regulatory Commission (PURC), which they believe will impact ECG’s ability to restructure its debt effectively.
Source:Omanghana.com
