IPPs kick against restructuring over US$1.4 billion debt owed by government

Independent Power Producers (IPP) have said they will not agree to any debt restructuring programme should government propose it.

According to the Chief Executive Officer of Independent Power Producers, Elikplim Apetorgbor, failure by government to settle its debt of US$1.4 billion will plunge the country into a power crisis as IPPs cannot supply power beyond June 30, 2023.

Mr Apetorgbor noted that his outfit had earlier informed government to pay at least 30 per cent of its debt.

The IPPs, namely; Karpowership, Sunon Asogli Power Ghana Ltd, CenPower Generation, AKSA, Twin City Energy and Cenit Energy produce about 65 per cent of the country's thermal power.

In an interview with Daily Graphic, he mentioned that IPPs have defaulted on their first-quarter payments and fear they would default on their second-quarter payments if the government does not settle their due.

Mr Apetorgbor indicated that, unlike the government which has the privilege of going back to its creditors to ask for forgiveness, the case of the IPPs is different.

“We have had some meetings and engagements and nothing has been proposed yet but there is no option for debt restructuring,” he stated.

He further said, “We have made a demand on government to pay at least 30 per cent of the outstanding debts of about US$1.4 billion as at the end of April to enable us to redeem our repayment pledges to our lenders and suppliers...The government has that luxury and privilege of going back to its creditors for debt forgiveness and restructuring but we don’t have that.”

Meanwhile, the Chief Executive Officer of Independent Power Producers said they are open to a payment plan on how government can settle their arrears.

As part of efforts for government to meet the conditions required for the US$3billion IMF loan, government introduced a domestic debt exchange programme.

The programme is aimed at restoring its capacity to service its high-rising debt.

Meanwhile, Ghana’s public debt stock stands at GH¢575.7billion, a report by the Bank of Ghana has shown.

This amount represents 93.5 per cent of the Gross Domestic Product.

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