Former President John Dramani Mahama, in light of the government’s $1.73 billion in unpaid debt, has encouraged the Independent Power Producers (IPPs) to rethink its plans to shut down its facilities on July 1.
The former President highlighted that such a move would have serious repercussions for Ghana’s economy and adversely affect the lives of many Ghanaian families.
The NDC flagbearer also urged the government to act right away and begin reaching out to IPPs on a long-term solution to the impending power crisis. He further stated that it is crucial that these discussions commence immediately and then be given the highest priority.
“As a concerned citizen, I would like to make a plea to the Chamber of Independent Power Producers (IPPs) to reconsider their decision to shut down their plants effective July 1, 2023.
“If the IPPs, who account for almost half of the country’s total power generation and over two-thirds of Ghana’s thermal power, go through with this plan, it will have a disastrous impact on Ghana’s economy and negatively affect the lives and livelihoods of countless Ghanaian families.”
John Dramani Mahama
On June 29, the Chamber of Independent Power Producers issued its members the order to stop supplying the national grid as of July 1. Sunon Asogli, Cenpower, Karpowership, AKSA, Twin City Energy, and CENIT are a few of the chamber’s members.
The energy sector in Ghana is heavily reliant on independent power producers, who account for 67 percent of Ghana’s thermal power and control 47 percent of the nation’s overall power generation mix. The six businesses claim a combined total of around $1.73 billion in Cedis in outstanding debt as of May 2021; the debt dates back to January 2021.
However, the IPPs emphasize how this debt has restricted its ability to access operating capital, prohibiting the IPPs from funding essential inputs such chemicals for water treatment in thermal generators and other supplies, many of which are priced in foreign currencies, particularly the US dollar.
The Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB) Chief Executive Officer, Elikplim Kwabla Apetorgbor, expressed their inability to persuade creditors, vendors, and other crucial stakeholders to further delay payments and sustain operations.
“Basically, we are saying that we lack the resources to continue generation beyond 30th June, and we are giving them [Finance Ministry] up to March. We didn’t hear from them, but the fact is beyond June we just don’t have the resource to continue to supply.”
Elikplim Kwabla Apetorgbor
ECG Urged To Pay Contractors
Awal Sakib Mohammed, President of the Ghana Electrical Contractors Association (GECA), also pleaded with the Electricity Company of Ghana (ECG) to settle debts owing to electrical contractors so that they can repay their bank loans, pay their suppliers and employees, and take care of their families.
He acknowledged that many contractors are struggling because there are not enough jobs available, particularly from the government, which is the biggest consumer. Additionally, he averred that some people are dying prematurely because they are unable to pay their medical fees.
According to Mr. Sakib Mohammed, ECG owes the contractors money, and some of the work was even completed when PDS was in charge.
He emphasized, “I can tell you for a fact that the jobs are not there. My colleagues and I are all crying for jobs. Government is the biggest spender and the government projects have stalled to extent that payments for jobs done are not even made, so it’s making things worse.”
The President of the electrical contractors also addressed a message to ECG, advising it to sit up and do all in its power to look out for the contractors and ensure that they are paid in addition to the collection of any money that customers owe the firm.
Moreover, he called it pitiful that ECG still owed the electrical contractor’s money for work done even under the PDS era.
“Those money have been locked and ECG is telling us they can’t do anything as the matter is in court. So in the coming days, we intend taking steps to address that. We intend to organize a national forum for all electrical contractors to meet and take a collective decision on the way forward.”
Awal Sakib Mohammed
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