Power producers in Ghana could shut plants over US$1.4 billion debt

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Ghana’s independent power producers, which produce almost half of the country’s electricity, say they could stop supply over government debt that amounted to US$1.4 billion as of June 30.

The debt continues “to accumulate, compelling the IPPs to contract costly loans to sustain their generations,” the Chamber of Independent Power Producers, Distributors and Bulk Consumers said in an emailed statement Tuesday.

“This situation is grim and there is a real danger of IPPs shutting their plants if the situation is not resolved in the immediate term.”

Ghana relies on private producers for nearly half of its peak demand of 2,700 megawatts. The 12-member group wants the government to share how it intends to repay its debt in a mid-year budget presentation on July 23.

It should also include measures to enable the state-run Electricity Company of Ghana Ltd. to pay suppliers on time, the group said.

A spokeswoman for the Ministry of Finance couldn’t immediately comment when reached on phone.

Source: Bloomberg

About Post Author

Ellis Ferdinand

Ellis Ferdinand is the Founder of Education Ghana Media Network ,a parent Company of EducationGhana.net ,an Online Education News Blog and Education Television, an Online Digital Television Channel. Ellis Ferdinand is a Graduate of Accra College of Education and the University of Cape Coast respectively, where he obtained a Diploma In Basic Education and a Bachelor of Education in Accounting. Awards Ellis Ferdinand won Blogger of the Year at the 2018 National Students’ Awards and was also adjudged 14th Best Ghanain Blogger in 2018 among Top 50 Ghanaian Bloggers of 2018. He introduced the Concept of Education Blogging in Ghana in 2014 with his famous blog EducationGhana.net. His Blog won Best Media Promoting Education in 2017, 2018 and 2019 respectively, an Award organized by Neogenics Education Consult. In 2019, He was adjudged the Most Promising West African Blogger of the Year in Nigeria.
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