Independent power producers want payment plan for US$1.4bn government debt

Independent Power Producers in Ghana are demanding a debt repayment plan from the government as Finance Minister Ken Ofori-Atta presents the 2020 mid-year budget review on Thursday, July 23, 2020.

The IPPs are owed about USD$1.4 billion for power supplied as of June 30, 2020, which continues to accumulate.

The Chamber of Independent Power Producers, Distribution Companies and Bulk Consumers in a statement on Tuesday said its 14 members have resorted to “costly loans to sustain their generations.”

Chief Executive of the chamber Elikplim Kwabla Apetorgbor in the statement warned that here is a real danger of IPPs shutting their plants if the situation is not resolved in the immediate term.

“The budget should include measures to ensure that the shortfall in ECG’s revenues are addressed as and when they occur, to ensure that IPPs and others who supply products or services to ECG are paid on time. IPPs cannot be responsible for the Government’s subsidies and other obligations,” Mr. Apetorgbor added.