Election 2024: We need a clear roadmap to IPP debt resolution – AGI president’s call to action
The president of the Association of Ghana Industries (AGI) has emphasised the urgent need for a detailed plan to stabilise Ghana’s energy sector and resolve the ongoing Independent Power Producers (IPP) debt crisis.
Dr Humphrey Ayim Darke speaking in an interview on Thursday, November 28, stated that businesses are under significant pressure due to uncertainties in the energy sector.
“We need a clear roadmap to power stability,” he said emphatically.
“The IPP debt situation is a ticking time bomb. These are inherent difficulties that, if not addressed, can destabilise our operations and the broader economy.”
The CEO of the Independent Power Producers (IPP), Dr Elikplim Kwabla Apetorgbor, has hinted that three power plants are set to shut down due to debts owed to the IPPs.
According to him, the government has failed to honour its promises to pay the $259 million debt owed by the Electricity Company of Ghana (ECG).
In an interview, Dr Apetorgbor warned that if the issue remains unresolved, the three key power plants will cease operations by next week.
As Ghana heads into its December 7 presidential election, Dr Darke’s message to candidates is unequivocal: the energy sector must take centre stage in national priorities.
According to him, the erratic energy supply, compounded by the threat of IPPs halting operations due to unpaid debts, directly affects industrial productivity and undermines investor confidence.
He warned that the situation poses a risk not only to businesses but also to Ghana’s macroeconomic stability.
“The IPPs sometimes threaten government on all fronts, and that instability spills over into the business environment,” he stated.
“We need solutions now, not later. The government must prioritize paying down these debts and ensuring a steady, reliable power supply.”
He also urged the incoming government to adopt a forward-thinking approach to managing energy-related debt.
“It’s not just about resolving the current crisis,” he explained. “We must consider how these debts will impact our macroeconomic future. How do we ensure that this doesn’t happen again?”