The Chamber of Independent Power Generators Ghana (IPGG) has raised serious concerns over delays in receiving governmental approvals for the Power Purchase Agreement (PPA) restructuring documents.
In a statement signed by the Chamber’s Chairman, Togbe Afede XIV, addressed to the Ministry of Finance, and received on August 16, 2024, the IPGGs indicated that its members are on the verge of abandoning the restructuring process and reverting to their original PPAs. The group emphasized the urgency of the situation and called for an immediate meeting with the Finance Minister, Dr. Mohammed Amin Adam, to address these pressing issues.
The statement stressed that any further delays could have catastrophic consequences for the stability of Ghana’s power supply, urging the minister to prioritize the meeting. “This meeting must occur at the earliest opportunity next week, as any further delay could be catastrophic for the nation’s power supply stability,” the IPGGs stated.
The IPGGs also expressed disappointment, highlighting their role in supporting the government’s restructuring of national debt to qualify for loans from the International Monetary Fund (IMF). Many members, they noted, agreed to take a financial hit, deferring payments to help the government recover under the IMF program.
Despite enduring economic hardships, the IPGGs agreed to the restructuring in good faith, believing it would ensure consistent payments to cover their operational and debt obligations. However, they now feel betrayed, as the Electricity Company of Ghana (ECG) has already defaulted on payments to the tune of $1.4 billion.
“The situation is extremely disappointing,” the statement added. “We are hardly a year removed from this new arrangement, and ECG is already materially in default.”
The Chamber warned that if the government and ECG continue to breach the agreement, they would have no option but to enforce their rights under the original contracts. “We cannot guarantee our cooperation moving forward, nor can we guarantee the continued reliable supply of electricity beyond August 30, 2024,” the IPGGs concluded.
