The Managing Director of the Electricity Company of Ghana (ECG) says some $30 million has been paid to Sunon Asogli Power Limited.
This is part of the $60 million debt owed the independent power producer.
According to Samuel Dubik Masubir Mahama, ECG is also working with government to settle the remaining $30million by next week to facilitate the operation of Sunon Asogli.
“Sunon Asogli and ECG have come to an understanding with the help of the government. Sunon Asogli as of now has received an amount of $30m in payment from the government of Ghana. The conversations are far advanced, and by next week, we will get them another $30m. Through this whole conversation, we have come out with proper structure to renegotiate the outstanding PPAs to bring it to a proper commerciality agreement that makes it much more sustainable and makes is more cheaper for the good people of Ghana”, the ECG boss explained.
Also read: Sunon Asogli reverts plant shut down after Finance Minister’s intervention
On Monday, December 4, Asogli announced plans to shut down, citing the government’s delay in honouring its financial obligations.
However, the decision was suspended following an assurance by Finance Minister, Ken Ofori-Atta.
In a statement sighted by JoyNews, the company said, “In view of the intervention and assurance from the Hon. Minister for Finance and Hon. Minister of State, we have resolved to suspend the plant shut down for one (1) week.”
Without giving further details about the exact assurances from the Minister of Finance, it noted in the statement that, “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.”
While confirming the first payment, Mr Mahama also assured that measures have been put in place for the remaining $30 million to be paid without delayed.
He again pledged ECG’s commitment to strengthening its relationships with all IPPs.
“They are one of the first IPPs and they have always treated Ghana fairly when it comes to how they have structured their PPAs, they are very good partners that we intend to grow with so we have even come up with a new way to renegotiate our outstanding PPA to make it much more efficient and cheaper for the good people of Ghana,” he noted.
We can’t guarantee power generation always – Independent Power Generators
On Friday, December 1, the Independent Power Generators, Ghana, formerly the Ghana Chamber of Independent Power Producers cautioned the government against restructuring energy debts owed to them.
According to the power generators, it is practically impossible for the government to restructure energy debts, amounting to about $2.3 billion.
This is because the IPPs are highly indebted to their suppliers and banks.
Speaking at a public forum organised by Think Progress Ghana, the Chief Executive of the Chamber of Independent Power Generators, Ghana, Elikplim Apetorgbor said members of the association cannot accept any haircut since their suppliers and bankers are after them to settle their huge debt and loans.
As of November 30, 2023, the government owed the IPPS about $2.35 billion.
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