Government taking steps to pay debt owed IPPs - Atta Akyea assures

Samuel Atta Akyea, Member of Parliament for Abuakwa South and Chairman of the Mines and Energy Committee of Parliament, has revealed that government is putting in place measures to ensure Independent Power Producers (IPPs) don't carry out a threat to shut down their equipments today, Saturday, July 1.

Atta Akyea told journalists in Parliament, that claims of selective payment of the GH¢1.7 billion debt owed to the IPPs were untrue.

“The independent power producers are concerned about the necessity that they should be paid and if you pay one, and you don’t pay the other and the power is withdrawn, what will be the consequences, and so I don’t think that the Minister of Finance will do that kind of thing of paying some and not paying others.”

“The government is acutely aware of the implication of withdrawing power from the system and so the government is doing everything to ensure that it doesn’t come to that.”

Decribing the matter as a financial one, he called on the Minister of Finance to find a middle ground with the IPPs on the issue.

“It is a financial matter and the Finance Minister must find a way to ensure that even if they will be met in some reasonable terms, they should do it.

"If you don’t have the money, but there is goodwill to pay some of the money, it will urge them to give you the power and so that is the whole point of the matter but when you take a stand against you not paying them at all, then you are trying to dare them to cut the power,” he stressed.

Dumsor: Mahama begs IPPs not to shut down

Former President John Dramani Mahama has made a plea to the Independent Power Producers (IPPs) to reconsider their decision to shut down their plants on July 1, 2023, due to the government's outstanding debt of $1.73 billion.

In a Facebook post on June 30, the former President highlighted the severe consequences such a move would have on Ghana's economy and the lives of Ghanaian families.

"As a concerned citizen, I appeal to the Chamber of Independent Power Producers (IPPs) to reconsider their plan to shut down their plants from July 1, 2023,” he said.

"If the IPPs, which account for nearly half of Ghana's total power generation and over two-thirds of the country's thermal power, proceed with this decision, it will have a devastating impact on Ghana's economy and negatively affect the lives of countless Ghanaian families," he added.

Mahama also urged the government to take immediate action and engage in discussions with the IPPs to find a sustainable solution to the impending power crisis.

He emphasised the need for prompt and prioritised discussions to address the issue effectively.

The Chamber of Independent Power Producers directed its members, including Sunon Asogli, Cenpower, Karpowership, AKSA, Twin City Energy, and CENIT, to cut supply to the national grid starting from July 1.

These independent power producers play a significant role in Ghana's energy sector, contributing 47 percent of the country's total power generation and 67 percent of its thermal power.

The outstanding debt of approximately $1.73 billion in cedis dates back to January 2021, hindering the IPPs' access to working capital and essential supplies, including chemicals for water treatment.

Elikplim Kwabla Apetorgbor, the CEO of the Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB), expressed their inability to secure further delays in payments from creditors and maintain operations.

In summary, the former President calls for a reconsideration of the shutdown plan by the IPPs and urges the government to engage in immediate discussions to find a resolution to the power crisis.

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