Ghana secures $66 million debt relief from Cenpower in revised power deal

The Government of Ghana has secured a $66 million discount on approximately $400 million in outstanding arrears owed to Independent Power Producer (IPP) Cenpower Generation Limited.

The concession forms part of an amended Power Purchase Agreement (PPA) signed between the government and the company, which also provides for a 10-year extension of the existing agreement and a reduction in tariffs.

Of the outstanding arrears, approximately $59 million was paid to Cenpower in 2025 as part of the government’s efforts to settle legacy debts owed to Independent Power Producers.

The amended agreement was signed at a ceremony marking the 10th anniversary of the operations of Cenpower’s 375-megawatt Kpone Thermal Power Plant.

Speaking at the event, Cenpower Board Chairman Samuel Nana Brew-Butler said the company had agreed to the $66 million discount as a contribution towards supporting Ghana.

He explained that although the outstanding arrears had reached approximately $400 million at one point, the company considered it necessary to make the concession in the interest of the country.

“So we are able to do the exchange of this document, which is the amended and restated Power Purchase Agreement, which allows us to give a whopping discount to all of you here. So, $66 million. If you remember, I said at one stage, what was outstanding was about $400 million, but it’s our country, so that sacrifice had to be made,” he said.

Brew-Butler added that the government had, in return, granted the company a 10-year extension of its PPA and agreed to reduce the tariff charged by Cenpower.

“As a gesture, the government also decided to give us a 10-year extension of the PPA. And that is a document that we seek to sign, and also a reduction in the tariff we are giving,” he noted.

The Vice President, Professor Naana Jane Opoku-Agyemang, who attended the ceremony as the special guest of honour, commended Cenpower for its 10 years of operations and its contributions to communities surrounding the plant.

She highlighted the company’s environmental and educational initiatives, including efforts to tackle plastic pollution along the shoreline of Sega Beach and programmes on waste management and biodiversity conservation for students of Paul Methodist School.

“Cenpower’s contribution extends beyond electricity generation to the communities around the plant. I understand that you are addressing plastic pollution along the shoreline of Sega Beach. We are very appreciative of it.

“You have also undertaken an educational programme on waste management and biodiversity conservation for students at Paul Methodist School. We are also very, very impressed by that. These are all worthwhile initiatives,” she said.

She urged the company to sustain its engagement with neighbouring communities and remain mindful of the environmental and social impact of its operations.

“I encourage Cenpower to maintain its relationship with the surrounding communities and continue to pay attention to the environmental and social consequences of its operations,” she added.

Since commencing operations, Cenpower Generation Limited has supplied electricity to approximately one million households.



MA