An independent power producer, Sunon Asogli Power (Ghana) Limited, has denied government accusations of bad faith.
This follows comments from Finance Minister Dr. Mohammed Amin Adam, who criticized the company’s recent decision to shut down its 560-megawatt power plant amid ongoing debt negotiations.
In an October 16 statement, Sunon Asogli attributed the plant closure to a substantial $259 million debt owed by the Electricity Company of Ghana (ECG), excluding fuel costs, as of September 2024.
The outstanding balance has created significant financial challenges, limiting Sunon Asogli’s ability to sustain regular operations.
The shutdown has led to widespread power outages across Ghana, with many communities experiencing unstable electricity supplies.
In response, the government initiated expedited negotiations with Sunon Asogli to stabilize the national power grid.
According to Sunon Asogli, the shutdown was essential due to escalating operational costs and limited working capital.
The CEO of the Independent Power Producers’ Association, Dr. Elikplim Apetorgbor, supported Sunon Asogli’s decision, arguing that the government’s failure to meet its financial obligations left the company with no viable alternatives.
The company’s leadership reaffirmed its openness to negotiations aimed at resolving the debt issue and ensuring consistent power supply.
“I am not aware when we have agreed to sign restructuring terms with anyone. We are still negotiating. No one goes into a negotiation to lose. It is always a win-win affair. And he [Amin Adam] has always maintained a position that if you will not accept this, I am not going to pay you. And even if we are signing, what it means is that we have reached a meeting point. But to the best of my knowledge, there is nothing like that. We are not there yet.
“He [the Finance Minister] has promised countless times to make payment to Sunon Asogli but he has not honoured those obligations or those promises. But today he’s saying that somebody is acting in bad faith. What is worse than that? You owe me about $259 million.
“Give me $60 million out of that for us to negotiate about the $2 million. And you are saying this is bad faith. We are faced with a challenge. We lack the working capital to resume operation or to continue operation,” he said.
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