Power producers in Ghana could shut plants over US$1.4 billion debt

Ghana’s independent power producers, which produce almost half of the country’s electricity, say they could stop supply over government debt that amounted to US$1.4 billion as of June 30.

The debt continues “to accumulate, compelling the IPPs to contract costly loans to sustain their generations,” the Chamber of Independent Power Producers, Distributors and Bulk Consumers said in an emailed statement Tuesday.



“This situation is grim and there is a real danger of IPPs shutting their plants if the situation is not resolved in the immediate term.”

Ghana relies on private producers for nearly half of its peak demand of 2,700 megawatts. The 12-member group wants the government to share how it intends to repay its debt in a mid-year budget presentation on July 23.

It should also include measures to enable the state-run Electricity Company of Ghana Ltd. to pay suppliers on time, the group said.

A spokeswoman for the Ministry of Finance couldn’t immediately comment when reached on phone.

Source:Bloomberg