Independent power producer Sunon Asogli Power (Ghana) Limited has dismissed accusations from Finance Minister Dr. Mohammed Amin Adam, who criticized the company for shutting down its 560-megawatt power plant amid ongoing debt discussions. The company maintains that its decision to suspend operations was unavoidable due to the Electricity Company of Ghana’s (ECG) outstanding $259 million debt, excluding fuel costs, as of September 2024.
On October 16, Sunon Asogli announced the plant’s closure, attributing it to mounting financial strain from ECG’s unpaid debt, which has hindered the power producer’s ability to sustain operations. This action has intensified power outages in several communities across Ghana, highlighting the impact of the financial impasse on national power stability.
In response to the shutdown, the government entered urgent negotiations with Sunon Asogli to stabilize the power grid. However, Sunon Asogli has held firm that the plant’s closure was a last resort, driven by rising operational costs and insufficient working capital.
CEO of the Independent Power Producers’ Association, Dr. Elikplim Apetorgbor, defended Sunon Asogli’s stance, citing the government’s failure to meet its financial commitments, which left the company with limited alternatives. He also disputed claims of a finalized debt restructuring agreement, emphasizing that discussions are still ongoing, and the company is seeking a “win-win” resolution.
“Minister Amin Adam has repeatedly promised payments to Sunon Asogli, yet these obligations remain unfulfilled. He accuses us of bad faith, but what is worse than withholding $259 million? We requested $60 million to resume negotiations, and he insists this is bad faith. We are simply struggling without working capital to continue operations,” said Dr. Apetorgbor.
Sunon Asogli has reiterated its willingness to engage in further negotiations to address the debt issue and ensure a steady power supply across the country.
