Sunon Asogli’s gambit worked – Bright Simons

The government of Ghana assured private power producer, Sunon Asogli Power (Ghana) Limited, of payments of their debts in two tranches after Sunon threatened to shut down due to delays in payments.

The Vice President of IMANI-Africa, Bright Simons, called the threat by Sunon a gambit that worked in their favour as the government was quick to respond to their demands.

He also noted that it is clear that the Independent Power Producers are detaching from their chamber to make their demands independently.

Bright wrote on X: “Private Power Producer (IPP) Sunon's gambit worked & govt of Ghana will now pay in 2 tranches over 2 weeks nearly 9 months worth of the money they have been drip-paying monthly. Karpower is also waiting. The big IPPs are clearly abandoning their chamber & cutting individual deals.”

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 is 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?"

SSD/NOQ

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