Independent power producers have rejected a government proposal to restructure $1.58 billion in arrears owed them by the state, the head of the group told Reuters on Friday, warning non-payment could lead to a shutdown of their operations.
Ghana aims to cut $10.5 billion in interest payments on its external debt in three years to be able to successfully implement a $3 billion loan deal from the International Monetary Fund (IMF) aimed at addressing its worst economic crisis in a generation.
Elikplim Kwabla Apetorgbor, head of the Independent Power Producers (IPP) Chamber, said the restructuring proposal had been "corporately and individually rejected".
Apetorgbor said the producers, which account for over 65% of available thermal power, were unwilling to make concessions and were also almost on the verge of switching off their plants.
Minister of State at the Finance Ministry, Mohammed Amin Adam, said the decision was unfortunate.
“We will continue with the engagement with the individual IPPs in a transparent and pragmatic manner and threats of shutdown when you are in negotiations cannot be accepted at this stage.”
Amin said the government would continue making all efforts to restructure the debt.
The IMF has blamed shortfalls in Ghana’s energy sector on factors including low tariffs and excess capacity amid take-or-pay contracts, which it said had cost the central government some 2% of GDP per year since 2019.
On May 17, the oil, gold and cocoa-producing nation raised the electricity tariff by 18.36% for the second quarter of 2023 after hiking it by almost 30% in the first quarter.
The nation’s utilities regulator has said that tariffs will now be adjusted quarterly.
Latest Stories
-
GDNR, AAU and others launch Universal Acceptance for local languages in internet domain names
8 mins -
Ogum and Kotoko’s March malaise
2 hours -
2 repair vessels dispatched for undersea cable repairs – says NCA’s latest update
2 hours -
Multimedia Group Limited’s Clinton Yeboah shortlisted for 2 International Sports Press Association Awards
3 hours -
Supreme Court upholds High Court verdict on fraudulent sale of property by Senior Police Officer
3 hours -
NHIS Biometric Membership Authentication System limited rollout satisfactory – NHIA Deputy CEO
3 hours -
Yara Ghana donates 1,107 bags of fertilizers to women farmers, farmers with disabilities
3 hours -
Tinubu forms team to find solutions to ailing economy
3 hours -
Jacob Zuma barred from running in South Africa election
3 hours -
Western Cape Education wins national primary school track and field championships
4 hours -
Cyber Security Authority issues Public Alert over Easter and Eid al-Fitr season scams
4 hours -
Sandro Tonali charged by FA for alleged betting rules breaches after joining Newcastle
4 hours -
Scancom PLC holds 6th AGM, declares dividend of 17.5 pesewas per share
4 hours -
Former Deputy AG accuses Godfred Dame of unethical legal behaviour
4 hours -
John Kumah goes home on May 18
4 hours