Sunon Asogli Power (Ghana) Limited has opted to temporarily halt the shutdown of its power plant, extending operations for a week. The decision, as communicated by the company, is attributed to the intervention and assurances provided by the Minister of Finance and Minister of State.
In a statement released on Monday evening, the company 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.
The independent power producer had initially declared an indefinite suspension of its 560MW plant, effectively ceasing operations immediately. This move was a direct response to the government’s delay in meeting its financial obligations to the power plant’s management.
The company, in a letter addressed to ECG reads: “Sunon Asogli Power (Ghana) Limited Company announces with regret an indefinite suspension of operations at the Sunon Asogli Power Plant, effective Monday, 4th December 2023 at 6 PM. This difficult decision became necessary due to avoidable delays in payment from the GoG/Electricity Company of Ghana for power supplied, as well as, the unproductive engagements to find an amicable solution” to the indebtedness.
The company complained that the accumulating unpaid bills have significantly impacted its operational capacity, making it unsustainable to continue without addressing these financial challenges”.
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.
Read below the full statement:
