The management of Electricity Company of Ghana (ECG) through the support of government has paid $30m to independent power producer Sunon Asogli Power (Ghana) Limited, Mr. Samuel Dubik Masubir Mahama, the Managing Director of ECG has disclosed.
Mr. Masubir Mahama added that ECG in collaboration with the government has planned to settle the remaining $30m by next week to facilitate the operation of Sunon Asogli.
The Managing Director of ECG revealed this after meeting with the independent power producer Sunon Asogli Power (Ghana) Limited in Accra today[December 8, 2023] to deliberate on payment plans for the $60 million debt.
“Sunon Asogli and ECG have come to an understanding with the help of the government. Sunon Asogli as of now has received an amount of $30m in payment from the government of Ghana. The conversations are far advanced, and by next week, we will get them another $30m. Through this whole conversation, we have come out with proper structure to renegotiate the outstanding PPAs to bring it to a proper commerciality agreement that makes it much more sustainable and makes is more cheaper for the good people of Ghana”, the ECG boss revealed in an interview monitored by The Ghana Report on News Central.
Speaking on the terms of payment, the ECG boss said, “The government of Ghana has arranged to have a sustainable payment plan that both technical teams are working to come up with the structure but for an immediate solution, Sunon Asogli needed a certain amount of money for their lenders of which they proposed they need $60m”.
Mr. Masubir Mahama also refuted allegations of ECG owing Sunon Asogli $900m.
“That number is very wrong. It’s a wrong number. The Government of Ghana does not owe Sunon Asogli $900m. If you say all IPPs put together close to $900m yes. Sunon Asogli only should be ranging from $250m to $300m”.
It would be recalled that Sunon Asogli Power shut down its plant on Monday, December 4, citing the government’s delay in honouring its financial obligations as the reason.
However, the firm suspended its decision for a week following an assurance from the Minister of Finance and a Minister of State to settle the debt.
“Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche is $30 million to be paid this week and the second tranche in the week of 11th December 2023,” a statement issued by Sunon Asogli Power (Ghana) Limited dated December 4, 2023, stated.