The leadership of the Electricity Company of Ghana (ECG) is scheduled to engage in discussions today, December 8, with Sunon Asogli Power Limited to negotiate the terms of settling a $60 million debt owed to the company. The meeting today will focus on modalities for clearing the debt owed by the government.
Earlier this week, the independent power producer had opted to temporarily halt the shutdown of its power plant, extending operations for a week after it rescinded on a move to indefinitely shutdown its power plants over debt concerns. This move was a direct response to the government’s delay in meeting its financial obligations to the power plant’s management.
The company complained that the accumulating unpaid bills have significantly impacted its operational capacity, making it unsustainable to continue without addressing these financial challenges.
Following assurances by the finance ministry to get the matter resolved, the company, in a statement released on Monday evening, outlined its understanding that an interim payment of $60 million would be disbursed in two installments. The first tranche, amounting to $30 million, is slated for disbursement within the current week, while the second tranche is earmarked for the week of December 11, 2023.
Independent Power Producers (IPPs) have over the years complained about the government’s indebtedness to them. However, several efforts, including threats to suspend operations, have not yielded any substantial results.
As of July 2023, there were reports that the government’s debt to the IPPs had hit about $1.6 billion.