Independent power producer (IPPs), Sunon Asogli Power (Ghana) Limited has responded to allegations from the government regarding its recent decision to shut down its 560-megawatt power plant, following criticism from Finance Minister Dr. Mohammed Amin Adam.
In a statement released on October 16, the company explained that the closure was a necessary response to the Electricity Company of Ghana’s (ECG) significant unpaid debt of $259 million, which does not include fuel costs, as of September 2024. The mounting debt has put substantial financial pressure on Sunon Asogli, making it challenging to sustain regular operations.
As a result of the plant’s shutdown, many areas in Ghana have faced extensive power outages, leading to unreliable electricity supply for communities.
In light of these disruptions, the government has acted swiftly to initiate negotiations with Sunon Asogli to restore stability to the national electricity grid.
Sunon Asogli clarified that the shutdown was driven by rising operational costs and a lack of sufficient working capital, rather than bad faith.
CEO of the Independent Power Producers’ Association, Dr. Elikplim Apetorgbor, voiced support for Sunon Asogli, asserting that the government’s failure to meet its financial obligations left the company with limited options.
The leadership at Sunon Asogli remains committed to finding a mutually beneficial solution to the debt issue while ensuring a reliable power supply for the nation.
“I am not aware when we have agreed to sign restructuring terms with anyone. We are still negotiating. No one goes into a negotiation to lose. It is always a win-win affair. And he [Amin Adam] has always maintained a position that if you will not accept this, I am not going to pay you. And even if we are signing, what it means is that we have reached a meeting point. But to the best of my knowledge, there is nothing like that. We are not there yet.
“He [the Finance Minister] has promised countless times to make payment to Sunon Asogli but he has not honoured those obligations or those promises. But today he’s saying that somebody is acting in bad faith. What is worse than that? You owe me about $259 million.
“Give me $60 million out of that for us to negotiate about the $2 million. And you are saying this is bad faith. We are faced with a challenge. We lack the working capital to resume operation or to continue operation.”