The ongoing parliamentary deadlock is impeding Ghana’s progress on finalizing critical debt restructuring agreements with Independent Power Producers (IPPs), the government has revealed.
At the Finance Ministry’s monthly economic briefing, Minister Dr. Mohammed Amin Adam disclosed that while agreements have been reached with three IPPs—AKSA, Asogli, and CENIT—negotiations with CEN Power and AMANDI remain unresolved. These agreements require parliamentary approval, which has been delayed due to the legislative stalemate.
Progress and Challenges in Restructuring Agreements
“For the government, we have fulfilled our obligations. We concluded negotiations with the Independent Power Producers, and some have already signed off. AKSA has finalized its agreement, and Asogli and CENIT are on the verge of doing so. However, CEN Power and AMANDI agreements require parliamentary approval, which is currently stalled,” Dr. Amin Adam explained.
He assured stakeholders that the government is committed to stabilizing the energy sector despite the hurdles. “We have been diligent on our side, but until parliament reconvenes to approve these agreements, the situation remains unresolved,” he added.
Potential Impact on Power Supply
The impasse poses a significant risk to the country’s energy stability. Failure to secure these agreements could exacerbate Ghana’s ongoing power challenges, potentially leading to frequent outages, or dumsor, and disrupting economic activities.
With the festive season approaching, concerns are mounting about the government’s ability to ensure reliable power supply and avert an energy crisis.
Parliamentary Deadlock: A Broader Economic Concern
The legislative body has been on an indefinite recess amid a protracted dispute between the two main political parties over parliamentary majority control. The deadlock has paralyzed decision-making on critical national issues.
“To say that the economy has not been affected would be an understatement,” Dr. Amin Adam admitted, highlighting the broader ramifications of the stalemate.
Parliament is expected to reconvene on December 16, 2024. Until then, stakeholders remain hopeful that swift resolutions can stabilize the energy sector and minimize the economic fallout.
