Debts owed Independent Power Producers have been renegotiated by the Finance Ministry.
That’s according to the Minister of State in charge of the Energy Ministry Herbert Krapa.
According to him the debts have been divided into current debts which are being handled by the ECG, while legacy debts are being handled by the Finance Ministry.
“The ECG through the Ministry of Finance has gone through a renegotiation process with the IPPs. Some of the debts have been referred to as legacy debts and then going forward from June 2023 current debts are being tackled by ECG, out of which 60% is current and 40% is being deferred. So in terms of the legacy debts, the Minister for Finance is attending to that and in terms of the current ones, ECG is on the current liabilities.
“What is important is that ECG continues to service, together with the Ministry of Finance, these debts.
They have renegotiated terms, have gone to cabinet, they will go to parliament and then once it is ratified, they can become effective. But as things stand now the legacy debt is tackled by the Ministry of Finance,” he explained.