IPPs anticipating provision for payment in mid-year budget review
The Chamber of Independent Power Producers and Bulk Consumers is demanding that the government captures the payment of the about US$ 2.3 billion debt owed them in the mid-year budget review.
The continuous accumulation of the debt, according to the chamber, is impeding its ability to sustain power generation.
Ghana may face an impending power crisis as IPPs consider shutting down their plants in the coming days if the government fails to settle the arrears as talks with ECG to fix the debt issue have stalled.
Elikplim Kwablah Apetorgbor, CEO of the IPPs Chamber, tells Citi Business News that a payment provision is expected in the half-year budget review.
“Unless there is a specific provision aside the supplementary budget. We expect a good budgetary allocation to support ECG to pay the arrears to the IPPs. We have been starved needlessly for almost seven months into the year. If not for the good faith we have towards our contract, you can imagine what the outcome will be. For the seven months in succession, we have been paid just about 12 percent of our monthly invoices”, he said.
The Chamber is made up of Sunon Asogli, Cenpower, Karpowpership, AKSA, Twin City Energy and CENIT.
They have expressed concerns that sustaining the plants over a longer period without debt settlement would become increasingly challenging.
The severity of the situation has reached a critical point, with the Ghana National Petroleum Corporation (GNPC) unable to pay for gas transportation services due to outstanding payments from the government.
Additionally, the West Africa Gas Pipeline Company is at risk of shutting down its valves if the government does not take urgent steps to settle its debt to the company, the source added.
Stakeholders in the energy sector have been raising alarm over the potential power crisis that could arise if the IPPs decide to cut their supply due to the mounting debt.
Source: Ghana Business
