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
Egypt and Greece to accelerate sub-sea power interconnection project
Egypt and Greece agreed to accelerate the 3GW Egypt–Europe electricity interconnection project via Cyprus, Al Mal reported on August 15, citing a statement from the Egyptian Minister of Electricity ... more
Kenya’s HoneyCoin raises $4.9mn to expand stablecoin payment infrastructure across emerging markets
HoneyCoin, a Nairobi-based fintech startup, this week raised $4.9mn in seed funding to expand its stablecoin-powered payment rails into new African, Latin American, and Asian ... more
Nigeria’s Elektron Finance launches $130mn bond programme for Lagos power project
Elektron Finance SPV, the funding arm of Nigeria’s Elektron Energy Development Strategies, has launched a NGN200bn ($130mn) bond issuance programme, marking its debut in the country’s debt ... more