Ofori-Atta engaging in discriminatory payment of debt owed to IPPs – Minority alleges

The Minority in Parliament has accused the Finance Minister, Ken Ofori-Atta of engaging in discriminatory payment of the debt owed to Independent Power Producers (IPPs).

According to the caucus, the alleged steps taken by the Finance Minister will not bring a resolution to the issue and concerns of the IPPs.

“The approach taken by the Finance Minister will not resolve the issue. The Finance Minister instead of dealing with the Chamber of IPPs is engaged in selective and discriminatory payment selecting some preferred IPPs, paying them and leaving them to their own fate.”

“We wish to call on the government and particularly the president to intervene urgently in this matter and ensure that we find an amicable solution. The debt as we speak now is about $1.7 billion, and it keeps compounding. ECGs losses today are over 30 percent, forex losses alone account for more than $300 million, fuel supplied that has not been paid runs into 100s of millions of dollars”

Ranking Member on the Mines and Energy Committee of Parliament, John Jinapor told journalists in Accra on June 30, 2023.

The lawmaker further appealed to the IPPs to reconsider their decision to cut power supply from the national grid effective July 1, 2023.

“Please reconsider your decision towards shutting your plants on July 1. Please give government and the nation some more time. We also call on the government to demonstrate leadership, to show commitment to resolving this issue,” John Jinapor added.

Meanwhile, government had earlier engaged the IPPs to restructure outstanding debt payment of $1.73 billion but the move was quickly rejected by members of the Chamber.

In Ghana’s energy sector, the Independent Power Producers play a pivotal role in providing power generation for distribution. They have a controlling stake of 47 percent of the country's total power generation mix and contribute 67 percent of Ghana’s thermal power.

The six members of the IPPs have the capacity to produce 2,010 megawatts of power to support the national power grid.

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