- Finance Ministry renegotiates IPP debts into current and legacy debts.
- ECG handles 60% (current debts), Finance Ministry handles 40% (legacy debts).
- Renegotiated terms await Parliament ratification.
- Government aims to resolve debt issue for stable power supply.
The Minister of State in charge of the Energy Ministry, Herbert Krapa, has announced that the Finance Ministry has successfully renegotiated debts owed to Independent Power Producers (IPPs). According to Krapa, the renegotiation process has resulted in the division of debts into two categories: current debts and legacy debts.
The current debts, which account for 60% of the total, are being handled by the Electricity Company of Ghana (ECG), while the legacy debts, making up 40%, are being addressed by the Finance Ministry. Krapa explained that the ECG, through the Ministry of Finance, has engaged in a renegotiation process with the IPPs to restructure the debts.
The renegotiated terms have been presented to Cabinet and will subsequently be submitted to Parliament for ratification. Once ratified, the new terms will become effective, allowing the ECG and the Finance Ministry to service the debts accordingly.
Krapa emphasized the importance of continued debt servicing by the ECG, in collaboration with the Finance Ministry, to ensure the sustainability of the power sector. The Minister noted that the legacy debts, which are being handled by the Finance Ministry, will be settled through a separate arrangement.
The renegotiation process is a significant step towards resolving the long-standing debt issue between the ECG and IPPs, which has impacted the power sector’s financial stability. By addressing these debts, the government aims to ensure a stable and reliable power supply, supporting economic growth and development.
