The Minister of Finance has been informed by Independent Power Producers (IPPs) that they would not be able to continue producing power if their arrears are not paid by June 30.
The IPPs claimed that the Ministry ignored their prior request to Finance to pay an interim 30 percent of their arrears in order to allow them to continue operating.
We refer to the Minister of Finance’s letters dated March 27 and May 25, 2023, with reference numbers IPGG/1/2023 and IPGG/2/2023, in which the IPP Chamber emphasised the urgent need for the government to prioritise paying the outstanding arrears owed to members of the IPP Chamber in order to allow the IPPs to cover crucial operational costs necessary to continue operations and pay past-due debt service”, the Finance Minister was informed in a statement.
According to the statement’s further information, “We had mentioned in our letters that IPPs required to obtain an interim payment of 30% of the outstanding arrears of each IPP by 20th June 2023.
Although the Electricity Company of Ghana’s recent collection efforts, as reported in the media, produced around US$3.1 billion, we regrettably have not seen any good faith indication or pledge of such an upcoming payment from ECG/Government as of today, June 21, 2023.
At a special meeting on Tuesday, June 20, 2023, the IPP Chamber made the following decision: “The members of the IPP Chamber concluded that they will not be able to guarantee the continued generation of energy after June 30, 2023, unless the IPPs get the interim payment required by that date.