Government has insisted that it has reached a debt restructuring deal with some individual power producers.

This will result in some of the companies taking a “hair cut” on the debts owed by government in the power sector.

The assurance from government is coming after, Chief Executive of the Chamber of Independent Power Generators, Dr. Elikplim Kwabla Apetorgbor in a statement,  dismissed the Minister of Finance’s , assertion that the Chamber of Independent Power Producers has agreed to a haircut after six years of negotiation with the government.

“It has come to our attention that the Minister of Finance has made public statements indicating that a deal has been reached with Independent Power Producers (IPPs) regarding debt restructuring. We must categorically state that this assertion is misleading and inaccurate”, Dr. Apetorgbor said.

Government’s response to the Chamber

Persons close to government have told JOYBUSINESS that the Finance Minister stands by the statement he made in London that some individual power producing companies have reached a debt restructuring deal with government and not the Chamber.

“We don't have an agreement with the Chamber of Independent Power Producers, but rather the individual firms”, a source explained.

 “As we speak, we have an agreement with five Independent Power Producers that is Cenpower,  Amandi, Erly Power, AkSA, Cenit”, the source said.
 

“These five companies we have reached agreement with them and they are preparing to a sign a deal with Government in the coming days”.

According to the source, Erly power is another company associated with Amandi which has also reached the agreement with government.

“Some of these agreements with the Independent Power Producers to restructure the debts were reached in the London with the parent companies”.

Delays in reaching Agreement with Asogli and Karpower

Government has also revealed that it has struggled to reach a deal with Asogli and Karpower due to what it says are “onerous demands”.

“Even in the case of Asogli, there has been a discussion with owners of the company in China, which has narrowed the differences”.

Deal with some of Independent Power Producers

Some of the Independent Companies have also confirmed to Joy Business that they have reached a deal with government to restructure the debt.

Officials of CENIT told Joy Business the company accepted the deal at the board meeting level.

The deal has forwarded to the owners of the company, SSNIT for further considerations.

Under the deal, Government will make some initial payments to CENIT while rest of the debt is paid over a period of time.

Another firm, AKSA has also told JOYBUSINESS that a deal has been reached with government and an agreement will be signed next week. They are however were tight-lipped about the terms, insisting that there are rules that must be followed since it is a listed company.