Government collaborates with IPPs to resolve Take or Pay Contracts

The government has begun collaborative consultations with Independent Power Producers (IPP) to resolve the Take or Pay obligations crippling Ghana’s Energy Sector.

The three-month engagement directed by the Ministers of Energy and Finance will involve direct discussions with each of Ghana’s Independent Power Producers and Gas suppliers among others.

At a meeting with stakeholders in Accra on Monday August 26, 2019, the Minister of Finance, Ken Ofori-Atta reminded the participants that a stable and growing economy was in the interests of businesses and investors.

The collaborative consultation process, which has been welcomed by the international investor community, is expected to “provide a forum for stakeholders to contribute to Government’s energy strategy”, he said.

The Minister emphasized the importance of the sector and its private sector operators and investors to Ghana’s energy future.

“Fundamental to achieving a sustainable future and industrialization is the all-important goal in having reliable and affordable power.

This is how important your investment is to us and that is why it is crucial for all of us to get this right, together”, he told the gathering.

Mr. Ofori-Atta added that “Moving Ghana Beyond Aid means Government is committed to achieving security of electricity supply and sustainable generating capacity that offers reliable and affordable power for the Ghanaian people and businesses, whilst providing investors with attractive opportunities.”

The meeting comes a month after the Minister for Finance told Parliament during his presentation of the Mid-Year Budget Review that government will do away with take-or-pay contracts in the energy sector.

Meanwhile government says it will release more details on the collaborative consultation process in the coming days.