Finance Minister Dr. Mohammed Amin Adam has openly criticized the management of Sunon Asogli Power Plant Limited, a key player in Ghana’s energy sector, for allegedly acting in “bad faith” by shutting down its 560-megawatt power production plant over an unsettled debt with the Electricity Company of Ghana (ECG).
The cessation of operations has raised concerns of a potential return to “dumsor”—intermittent power outages—which could disrupt the economy and strain national productivity. According to Dr. Amin Adam, the Ministry of Finance found Sunon Asogli’s approach questionable, particularly as the company was willing to withhold a critical power supply based on unresolved financial terms.
“When the Ministry of Finance made the one-off payment to all the IPPs [independent power producers], we were supposed to pay Asogli USD 30 million.
“Subsequently, they made a case for another USD 30 million, but we did not agree to that, so we finalized the negotiations with them on the arrears.”
Finance Minister Dr. Mohammed Amin Adam
The dispute has revolved around Sunon Asogli’s claim that it was owed USD 259 million in arrears by ECG, a significant debt that the power producer says has impacted its financial stability and operational capabilities.
While government intervention included a one-off payment to settle parts of this debt, a disagreement over additional demands from Sunon Asogli led to the power producer’s shutdown decision.
Asogli, a subsidiary of the Shenzhen Energy Group based in China, provides a significant portion of Ghana’s power supply, making its shutdown a substantial threat to the national power grid.
“ECG actually led the negotiations, and as part of the settlement, ECG wanted us to pay the USD 30 million,” Dr. Amin Adam stated
“But Asogli wanted to sign the agreement after receiving the payment, which we found to be contrary to usual practice. Implementing an agreement that has not been formally signed by both parties could open up further disputes.”
Finance Minister Dr. Mohammed Amin Adam
Accusations of Election-Year Pressure
Dr. Amin Adam did not mince words in expressing frustration over the timing of Sunon Asogli’s demands, especially as the country approaches an election year.
He accused the power producer of trying to use its critical position within Ghana’s energy sector to “put a gun on the head of government” by threatening to shut down, a move he described as opportunistic and indicative of bad faith.
“So, it will be as if we, as a country, do not know our rights, especially when an election is closer.
“Everybody thinks that by shutting down, they can exert more pressure on the government to concede to their demands, but that is not the case. Our national interests remain paramount.”
Finance Minister Dr. Mohammed Amin Adam
The cessation of Sunon Asogli’s operations has rekindled memories of “dumsor,” a term used to describe intermittent power outages that plagued Ghana between 2012 and 2016, severely impacting the economy.
A shutdown of Sunon Asogli’s capacity not only affects immediate power supply but could strain other power sources, potentially leading to load-shedding and longer-term economic repercussions.
The Ministry of Finance is expected to finalize the debt settlement agreement with Sunon Asogli within days, as Dr. Amin Adam assured that discussions were ongoing to avoid any prolonged disruption in power supply.
The Minister indicated that reaching a settlement would help stabilize the energy sector and prevent the return of power shortages, which could hinder national development.
While the government has shown willingness to negotiate with Sunon Asogli and address ECG’s debt, it has also taken a firm stance on protecting the nation’s economic stability and public welfare.
Dr. Amin Adam’s assurance of a swift resolution aims to reassure Ghanaians that efforts are underway to avoid further power disruptions, as the country continues to work toward a reliable and self-sustaining energy sector.
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