Ghana’s independent power producers (IPPs) have temporarily halted their impending shutdown, originally scheduled for July 1, following the establishment of an interim agreement with the state-run Electricity Company of Ghana. The IPPs announced this development through a statement issued late on Friday, revealing that the resolution primarily addressed the long-standing issue of outstanding payments owed to them.
Towards the end of May, the independent power producers (IPPs) expressed their dissatisfaction with a government proposition to reorganize the outstanding debt of $1.58 billion owed to them by the state. The International Monetary Fund presented a $3 billion loan agreement to Ghana to tackle the nation’s most severe economic crisis in decades, and Ghana accepted the proposal.
Subsequently, the group issued a warning, indicating that in the absence of an interim payment covering 30% of the arrears, designated to address essential operational expenses and their outstanding debt obligations, there would be a risk of power outages starting in July. This cautionary statement underlined the criticality of timely financial support to ensure the uninterrupted functioning of their operations and the fulfillment of their financial obligations.
Following the recent agreement, the independent power producers (IPPs) have received a proposed interim payment. It is understood that during this grace period, the government and the Electricity Company of Ghana will engage in constructive discussions to find a permanent solution to the debt issue, as stated by the group. This development signifies the shared commitment to work collaboratively towards resolving the outstanding debt matter, with a focus on achieving a sustainable resolution in the long term.
The group emphasized that if they fail to reach the desired outcome, they would have to reinstate their previous decision to initiate a shutdown without any additional warning. The statement made it clear that the independent power producers (IPPs) would have to take decisive action to safeguard their interests if the necessary resolution is not achieved.