Sunon Asogli decides to resume plant operations following the intervention of the Finance Minister

Sunon Asogli Power (Ghana) Limited, an independent power producer, has officially declared a one-week suspension of its power plant shutdown. The initial decision to shut down indefinitely stemmed from unresolved debts owed by the Electricity Company of Ghana (ECG).

However, this action has been temporarily halted in response to assurances provided by the Minister of Finance.

The Minister of Finance has committed to disbursing an interim sum of $60 million in two tranches. The first tranche, amounting to $30 million, is anticipated to be processed within the current week.

The subsequent tranche is earmarked for the week starting December 11, 2023. While the specifics of the Minister’s assurances remain undisclosed, this development provides a brief reprieve for Sunon Asogli Power.

This ongoing financial quandary, coupled with the recurrent threats of plant closures, sheds light on the intricate challenges confronting independent power producers within Ghana’s energy sector.

The situation not only underscores the financial fragility of these entities but also accentuates the broader complexities affecting the stability of the country’s power supply.

On December 1, the Independent Power Generators, Ghana—formerly the Ghana Chamber of Independent Power Producers—issued a stern warning to the government regarding the potential restructuring of energy debts owed to them.

The power generators underscored the impracticality of restructuring approximately $2.3 billion in energy debts, citing their substantial indebtedness to both suppliers and banks.

Elikplim Apetorgbor, the Chief Executive of the Chamber of Independent Power Generators, Ghana, conveyed this message during a public forum organized by Think Progress Ghana.

He emphasized that association members are unable to consider any reduction in debt, given the mounting pressure from suppliers and banks to settle their substantial outstanding debts and loans.

As of November 30, 2023, the government’s outstanding debt to the Independent Power Producers amounted to approximately $2.35 billion.

This complex financial scenario adds to the challenges faced by the power generators, reflecting the intricate dynamics within Ghana’s energy sector.