Sunon Asogli Power (Ghana) Limited has decided to postpone the plant’s indefinite suspension for a week, reversing its initial decision.
The corporation decided to proceed after receiving assurances and assistance from the Minister of State and the Minister of Finance.
The company said in a statement on Monday night that it has come to an arrangement to get an interim payment of $60 million paid in two installments. It is anticipated that the $30 million first installment will be paid this week, and the second installment will be paid the week of December 11, 2023.
Due to the government’s delay in meeting its financial obligations to the enterprise, the independent power producer first declared the permanent shutdown of its 560MW facility.
Sunon Asogli Power wrote to the Electricity Company of Ghana (ECG) expressing apologies for the operations suspension and highlighting the amount of unpaid bills that had accumulated as well as the futile attempts to find a solution.
According to the company, these financial difficulties have severely limited its ability to operate and have made it unfeasible for it to carry on without paying off the existing debts.
This development draws attention to a persistent issue that Ghana’s Independent Power Producers (IPPs) are dealing with. As of July 2023, the government’s debt to the IPPs was estimated to be around $1.6 billion. The IPPs have long complained about the government’s debt, but their threats to halt operations have not had much of an impact.