Ranking Member, Mines and Energy Committee, John Abdulai Jinapor, has disclosed that finance minister, Ken Ofori-Atta, is engaged in selective payment of debt owed Independent Power Producers (IPPs) in the country.
According to him, the move by the finance minister does not augur well for the country.
“The finance minister instead of dealing with the Chamber of IPPs, he’s engaged in selective payments, discriminatory payments, selecting some preferred IPPs, paying them and leaving others to their own fate. We want to call on the finance ministry and government, particularly the President, to intervene urgently in this matter and ensure that we find an amicable solution…”
John Abdulai Jinapor
Addressing the media today, June 30, 2023, Mr Jinapor noted that the mines and energy committee met the Independent Power Producers over the weekend. He explained that per engagement, the situation with regard to the potential state of the country is “dire” if the IPPs do not yield to reneging on their decision to shut down operation.
“We are on the brink and if nothing is done the Independent Power Producers will shut all their plants, bearing in mind that these IPPs constitute about 67% of thermal power produced in Ghana.”
John Abdulai Jinapor
Impact of IPPs shutdown will be massive
Furthermore, Mr Jinapor explained that a shutdown of IPPs plants will mean that the country will experience “massive load shedding, massive blackout [and] massive dumsor” that has not been experienced before. He highlighted that when 50% of the total power produced is taken out, the economic impact will be felt by all and sundry.
To avert the potential power crisis, Mr Jinapor stated that the minority deems it necessary to make a passionate appeal and plead with the Independent Power Producers to give government and the nation more time to make payment.
“I have spoken to former President Mahama and he has indicated that on his behalf, I should make a passionate and humbling appeal to these independent power producers that for the sake of this country, he is making a passionate appeal to them to reconsider their decision towards shutting their plants on the first of July…”
John Abdulai Jinapor
The ranking member of parliament’s mines and energy committee further pleaded with government to demonstrate leadership and commitment to the IPPs. This, he indicated, is because the approach being adopted by the finance minister will not resolve the issue.
“The debt as we speak now is about $1.7 billion, and it keeps compounding. ECGs losses today are over 30 percent, forex losses alone account for more than $300 million, fuel supplied that has not been paid runs into 100s of millions of dollars…”
John Abdulai Jinapor
Meanwhile, the Electricity Company of Ghana (ECG) is engaged in a crunch meeting with Independent Power Producers. The conclusion of the meeting will determine whether the IPPs will suspend their intended shutdown or not.
Sources at the ECG however believe that there will not a shutdown of IPPs operations after the meeting.
Moreover, some IPPs are deemed to have accepted some payment from government per the three-day individual engagement held with government. However, the actual amount paid to these IPPs remain undisclosed. It is expected that should the shutdown occur, not all the IPPs will shutdown their plants as a result of that payment. Nonetheless, there is a meeting between the IPPs scheduled at 5pm today, after which they will come out with an official decision.
The Independent Power Producers have overtime, expressed their disinterest in revoking their deadline to shutdown their operation. According to the producers, they require payments to be made in order to maintain the plants so as to release power to Ghanaians.
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