The Finance Minister, Dr. Mohammed Amin Adam, has announced a significant breakthrough in the government’s negotiations with five of the country’s seven Independent Power Producers (IPPs), achieving an estimated $6.6 billion in savings over the duration of the Purchasing Power Agreements (PPAs).
The IPPs involved in the successful negotiations include AKSA, Amandi, CENIT, Cenpower, Karpowership, Early Power, and Sunon Asogli. This was mentioned by Dr. Amin Adam during his presentation of the 2024 Mid-Year Budget Review in Parliament on July 23.
“We have concluded our negotiations with five of the seven Independent Power Producers, which will lead to a saving of some US$6.6 billion over the lifetime of the Purchasing Power Agreements (PPAs),” Dr. Amin Adam stated.
Earlier this month, Dr. Amin Adam hinted at the successful negotiations during a joint press briefing with the International Monetary Fund (IMF) and the Bank of Ghana. He explained that as part of the Energy Sector Recovery Programme (ESRP), the government has been negotiating with IPPs to restructure over $1 billion in legacy debt and address the accumulation of arrears in the energy sector. The objective is to implement critical reforms to enhance the sector’s financial sustainability.
“The final round of negotiations in June 2024, after several months of discussions, resulted in commercial agreements on debt restructuring terms and renegotiated PPA terms with Amandi, Cenpower, Early Power, CENIT, and AKSA,” the finance minister added.
However the Chief Executive of the Chamber of Independent Power Producers Dr. Elikplim Apetorgbor continue to dispute the Minister’s claim threatening that power rationing could resume.
