Finance Minister accuses Sunon Asogli of ‘Bad Faith’ as power plant shutdown threatens Ghana’s energy stability
Finance Minister Dr. Mohammed Amin Adam has condemned Sunon Asogli Power Plant Limited’s management for acting in “bad faith” by halting its production over an unpaid debt from the Electricity Company of Ghana (ECG). The 560-megawatt plant, crucial to Ghana’s power grid, ceased operations due to ECG’s outstanding $259 million debt, raising concerns of potential power outages, or “dumsor,” with serious economic implications for the country.
Addressing the media after the Annual IMF-World Bank Meetings in Washington, D.C., Dr. Amin Adam assured Ghanaians that a solution to the debt dispute is imminent, with an agreement expected to be signed within days to prevent further power disruptions.
“Asogli submitted the final agreement for review, and we accepted it except for one point, which led to the shutdown,” Dr. Amin Adam explained. “When the Ministry of Finance made a one-off payment to all Independent Power Producers (IPPs), we allocated $30 million to Asogli. However, they later demanded an additional $30 million, which we could not accommodate, so we concluded negotiations on the arrears.”
ECG, which initially led the negotiations, requested that the Ministry pay Asogli the additional $30 million. “ECG argued for the amount, but we couldn’t justify it. After discussions with Asogli, we agreed to pay on the condition that they sign the settlement agreement, a standard requirement. However, Asogli insisted on payment before signing. It’s unreasonable to execute an agreement that hasn’t been signed.”
Dr. Amin Adam disclosed that Asogli later raised its demand to $60 million, threatening to shut down if not paid in full. “It appears some believe that with elections nearing, they can pressure the government with ultimatums. This behavior, especially given its timing, reflects bad faith,” he concluded.
