Finality to the government’s agreements with two Independent Power Producers (IPPs) have grounded to a halt with no end in sight due to the indefinite suspension of Parliament by Speaker Alban Bagbin.
Already the suspension is biting hard with many parliamentary approvals halted including the crucial first quarter budget of 2025.
Ghana’s energy sector is also feeling the grave impact of the suspension as the Ministry of Finance cannot ratify two agreements with two of the IPPs.
By the nature of the state’s contract with the two IPPs – Cenpower and Amandi – their renegotiated terms as part of the IPPs Debt Restructuring exercise must go through Parliament for ratification.
Although the Finance Ministry has painstakingly been able to strike a deal with the two IPPs, it is failing in its obligations to seek Parliamentary approval due to the current controversy with the House.
Minister of Finance, Dr. Mohammed Amin Adam confesses that the situation is taking a huge toll on the processes as the Ministry is racing against time to get the required approval from Parliament although the agreements have been submitted to the House.
“Cenpower and Amandi, their agreements require parliamentary ratification. We have finalized negotiations with them and we have submitted the renegotiated power purchase to Parliament for consideration,” the Minister for Finance said in Press Briefing in Washington DC.
He further lamented that, “we know that there are problems in Parliament. This is one of the effects that the suspension is having on government business. Because we were expecting that Parliament would approve these renegotiated agreements so that the settlement between us and Cenpower and Amandi would come into force but here is the case Parliament is not in session.
“We continue to say that democracy is expensive and this is one of the costs of democracy because we don’t want to undermine parliamentary processes but you also have conditions to meet in negotiations with your partners.”
Dr. Mohammed Amin Adam who also doubles as the Member of Parliament for Karaga says he fully supports the call of the NPP leader in Parliament to get the House recalled. In addition to the stalled IPP Debt Restructuring Agreements, he says there are many government businesses that require immediate consideration of Parliament.
“I want to support the call by the majority leader for parliament to be recalled so that we can continue to support the business of government in order for us to meet our obligations in the agreements that we have signed with our partners and stakeholders.”
So far three IPPs Debt Restructuring Agreements have been finalized out of six. The suspension of Parliament has halted two of these agreements with one outstanding with Karpower.
