Sunon Asogli Power Ghana Limited continues to grapple with delayed payments from the Ministry of Finance, as not a single tranche of the promised $30 million has been received.
With mounting debt from the Electricity Company of Ghana (ECG) and no funds released yet, concerns are growing that the power plant’s shutdown could extend, potentially deepening Ghana’s energy woes.
According to Dr. Elikplim Apetorgbor, Business Development Manager at Sunon Asogli Power Ghana Limited, the Ministry of Finance had directed the Controller and Accountant General’s Department (CAGD) to release $30 million as part of efforts to address the outstanding debt owed by the Electricity Company of Ghana (ECG).
However, due to financial constraints, the Ministry informed Sunon Asogli that they would split the payment into five or six tranches, with the first tranche promised during the week of salary payments and the remaining installments to be completed by the end of October.
Yet, as of November, not a single tranche has been received, raising concerns about the Ministry’s ability to fulfill its commitments to the energy sector.
“We received notification from the Controller and Accountant General’s Department in the first week of our shutdown. They informed us that the Ministry of Finance authorized them to pay us $30 million. But they are having some challenges.
“It was in the week of salary payments and they have to split this payment into five or six tranches. We are in November, and not even one tranche has been received but the assurance was that they will try and pay one tranche in their week of salary payment and the rest will come before the end of October. Here we are, not even one of the tranches has been paid,” said Dr. Apetorgbor.
The independent power producer (IPP), has been facing significant financial challenges due to substantial unpaid debts from the Electricity Company of Ghana (ECG). As of September 2024, ECG owed Sunon Asogli approximately $259 million, excluding fuel costs. This mounting debt has severely impacted Sunon Asogli’s operations, leading to the shutdown of its 560MW power plant on October 8, 2024.
This situation has broader implications for Ghana’s energy sector, as other IPPs also face similar financial pressures due to delayed payments from ECG.
Dr. Apetorgbor expressed disappointment, remarking that the Ministry of Finance has, unfortunately, become more of a public relations front than a reliable financial institution. He urged the public to exercise caution and verify any statements from the Finance Minister, emphasizing the need to confirm the accuracy of information coming from such a critical office.
