Minority leader, Dr. Cassiel Ato Forson, has warned that the government’s attempt to restructure the energy sector debt could lead to the collapse of independent power producers (IPPs).

According to him, the government’s lack of commitment to settling the huge debt owed independent power producers has already placed these producers in jeopardy.

He stated that the finance minister’s announcement in the Mid-Year Budget Review of a restructuring of the energy sector debt would further exacerbate an already bad situation, eventually dealing them a fatal blow.

Speaking on JoyNews’ PM Express, he said the independent power producers have a right to demand their arrears.

“So the IPPs they’re only right in complaining. You have budgeted and you owe the energy sector shortfalls 23.6 billion and you have only paid 1.9 billion Ghana cedis.

“In fact, they themselves they programmed that the first half of the year they were going to pay 5.5 billion. Even that amount in the same budget statement, even that amount they have failed in honouring payment. So I’m not surprised that they’re complaining,” he said.

Dr. Ato Forson further stressed that the plan to restructure he energy sector debt would be counterproductive.

He explained that cutting the arrears owed independent power producers would eat away their profitability and their survival.

“But you see we’re making a mistake. These IPPs, they’ve gone for a loan. The loans need to be serviced. They have provided you a service, they’re contractors. And if you are to say that you’re going to give them a haircut, you’re giving them a haircut on what?

“The arrears is owed to their bankers. So when you cut it, you’re cutting their profitability and their survival. And so we should be careful the road we’re charting. Because if care is not taken we’ll end up destroying these IPPs and they’ll not be able to be around to support us,” he said.