Government is targeting the end of March this year to sign off debt restructuring agreement reached with Independent Power Producers (IPPs).

Government has also stated that the debt owed the power producers has been reduced to about $700 million.

“We are targeting the end of March to conclude the restructuring. We have also been able to reduce the debt to $700 million, which we believe is a significant step in the negotiations”, some persons close to the negotiation processes told Joy Business.

Already, government has indicated that it has made payments since 2023 to some IPPs.

The payments commenced after government reached some agreements with about 5 Independent Power Producers in July 2023 when the debt was pegged at $1.6 billion.

In 2023, some IPPs threatened to cut power supply to power if debt owed them are not cleared.

According to the persons working on the negotiations, the debt got to alarming levels, which prompted the IPPs to issue the threats after which the payments begun.

JOYBUSINESS understands that the term sheets have already been exchange with about five of the independent power producers for further scrutiny as at February 28, 2024.

There has not been any objection raised yet with the terms proposed.

Information received by JoyBusiness also shows that government is working to bring two more independent power producers to participate in the negotiations to restructure the debts.

It is expected that the restructuring will be concluded by end of March 2024 after the agreement is signed.

Government has also made some agreements with the Electricity Company of Ghana to receive some payments