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Tuesday, November 5, 2024
BusinessFinance ministry orders payment of a $30m debt to Sunon Asoglin

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Finance ministry orders payment of a $30m debt to Sunon Asoglin

The Ministry of Finance has ordered the Controller and Accountant General’s Department to pay $30 million owed to Sunon Asogli, an Independent Power Producer (IPP).

This directive is part of a new agreement intended to address debts that led Sunon Asogli to shut down its 560-megawatt power plant.

The shutdown raises concerns of “dumsor” (power outages), which would affect both the economy and power consumers.

Despite the directive, Sunon Asogli’s spokesperson, Dr. Elikplim Apertogbor, expressed frustration over the Finance Ministry’s reluctance to engage in further talks about the debt.

He stated that, since the plant’s closure, the Finance Minister has avoided formal negotiations, signaling a communication breakdown between the IPP and the government.

Executive Director of the African Center for Energy Policy (ACEP), Ben Boakye, added that structural inefficiencies in Ghana’s energy sector, compounded by poor leadership, particularly at the Electricity Company of Ghana (ECG), are contributing to frequent shutdowns and operational issues.

He suggested that these issues stem not from a lack of funds but from ineffective management and a lack of genuine commitment to solving the sector’s problems.

“These shutdowns will continue to occur because the situation is not good, it’s terrible.

“We often discuss the need for investment, but even with investments, the situation deteriorates. This indicates that the problem lies more in leadership and the commitment to address the issue rather than just money,” Boakye noted.

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