Ghana has reached an agreement to restructure the $1.6bn debt owed to independent power producers (IPPs), Finance Minister Mohammed Amin Adam announced at the UK-Ghana Business Forum in London on June 24.
The deal will allow the government to spread out the payment of arrears over five years, according to Asaase News.
“We have restructured the arrears of the independent power producers in Ghana, particularly the four major independent power producers, in a way that has brought us some significant haircut or discount and that now allows us to spread the balance over five years or above,” Adam said.
This agreement is expected to stabilise the power industry and ensure a steady power supply for Ghana. “The problem that Ghana’s energy sector is faced with is now under control,” Adam added, emphasising that the Electricity Company of Ghana (ECG) will stop power supply interruptions.
According to the energy ministry, Ghana’s total installed capacity is over 4,132MW, with 38% from hydro, 61% from thermal, and less than 1% from solar. However, rising domestic demand and fuel supply issues have strained this capacity, writes The Africa Report.
Related Articles
EFCC arrests ex-NNPCL official and previous Warri managing director
Nigeria’s Economic and Financial Crimes Commission (EFCC) has arrested a former CFO of the Nigerian National Petroleum Co. Ltd (NNPCL), as well as a former managing director of 125,000 barrels per ... more
Fitch warns Ghana’s reserves at risk if gold prices plunge amid global geopolitical shifts
A sharp fall in global gold prices, now sitting above a record-high $3,300 per ounce, could rapidly erode Ghana’s international reserves and trigger fresh economic instability, ... more
Ghana’s debt-laden oil refinery TOR faces $517mn burden amid IMF reclassifications
Ghana’s state-owned Tema Oil Refinery (TOR) is grappling with a ballooning debt of $517mn, its management has revealed, attributing the liability to a mix of trade arrears, legacy obligations, and ... more