The cumulative invoice on debts owed Independent Power Producers (IPPs) is projected to hit $450 million by the end of the year, should talks between the IPPs and the government for the restructuring of energy sector debts fail to progress.
Talks aim to restructure the energy sector debts totaling $1.46 billion.
While the government is close to reaching a deal with IPPs, the power producers are insisting on a bulk down payment of the legacy debts before finalizing terms.
Despite nearing win-win terms, the deal remains unsigned due to unmet preconditions set by the government.
One major sticking point is IPPs’ demand for a bulk down payment of the legacy debts.
The delay is concerning as the remaining 30% of invoices, unpaid since July 2023, continues to accumulate as additional debt, potentially reaching $450 million by year-end if negotiations linger.
Failure to address the debt accumulation may prompt IPPs to cut power supply to recoup losses.
Initially aiming for a March deadline, the government now targets concluding negotiations by the end of May.
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