Former Ghanaian President, John Mahama, has urged the Chamber of Independent Power Producers (IPPs) not to shut down their production plants.
The IPPs are demanding that the government pays off 30% of their outstanding debt of $1.73 billion, or they will cease operations on June 30th.
This could have a major impact on Ghana’s economy and the lives of many Ghanaians, Mahama says.
Mahama has called on the government to engage in dialogue with the IPPs to find a sustainable solution and avoid any adverse effects on the economy.
Chief Executive of the Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB), Elikplim Kwabla Apetorgbor, who announced the chamber’s ultimatum said they are no longer able to convince creditors, contractors, and other essential stakeholders to delay payments owed.
“All the IPPs are operating on borrowed funds and the critical part is our ability to pay our debt. The second quarter is about to end, so the six of us have no resources to continue to supply, so we are not going beyond June 30th”, Apetorgbor told Accra’s CitiFM.
The IPPs, which account for almost half of the country’s total power generation and over two-thirds of Ghana’s thermal power, have rejected debt restructuring.
“We have sacrificed a lot for the economy, the debt in question is already debt we have borrowed from our lenders and we can’t explain to them that we can’t pay because Ghana’s economy is in shambles, they won’t listen.”
Despite their significant contribution to the energy sector, the IPPs have declined debt restructuring and are unable to provide lenders with assurances of Ghana’s economic stability and ability to repay its debts.Share on: