Sunon Asogli Power (Ghana) Limited has opted to suspend the indefinite shutdown of its 560MW power plant.
The U-turn was arrived at after engaging in discussions with the government regarding the unpaid debt.
The decision for the suspension comes after the intervention and assurance of the Minister of Finance and Minister of State, the company affirmed.
In an official statement issued on Monday evening, the company outlined the conditions for the suspension.
It mentioned, “Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche of $30 million to be paid this week, and the second tranche in the week of 11th December 2023.”
The independent power producer had initially announced the indefinite shutdown, citing the government’s delays in fulfilling its financial obligations as the primary reason for the drastic decision.
The company expressed regret over the situation, emphasizing the impact of accumulating unpaid bills on its operational capacity.
The letter addressed to the Electricity Company of Ghana (ECG) highlighted the challenges faced by Sunon Asogli Power (Ghana) Limited, noting that the unpaid debts were unsustainable for the continued operation of the power plant.
Over the years, Independent Power Producers (IPPs) have consistently raised concerns about the government’s indebtedness to them.
Despite various efforts, including threats to suspend operations, the issues have not been adequately addressed. Reports as of July 2023 indicated that the government’s debt to IPPs had reached approximately $1.6 billion.
IPPs, including Sunon Asogli Power, have expressed dissatisfaction with the government’s electricity tariff reduction efforts, arguing that it negatively impacts debt restructuring initiatives.
The President of the IPPs, Dr. Elikplim Apetorgbor, highlighted the challenges faced by the industry, stating, “We are on life support and cannot guarantee continuity. If you give us a haircut, say a 30% or 40% reduction, who is going to pay our debts for us?”
