Negotiations of IPPs’ debts yielding an estimated $6.6 billion in savings – Finance Minister
Finance Minister, Dr. Mohammed Amin Adam, has said that the government has successfully concluded negotiations with five of the country’s seven Independent Power Producers (IPPs).
This negotiation, he said, is yielding an estimated $6.6 billion in savings over the lifetime of the Purchasing Power Agreements (PPAs).
The IPPs, whose debts have been successfully nogaituated include AKSA, Amandi, CENIT, Cenpower, Karpowership, Early Power, and Sunon Asogli.
The Minister said this during the 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.
Dr Amin Adam first hinted at the successful negotiation in a joint press briefing with the IMF and Bank of Ghana earlier this month.
“As part of the implementation of the Energy Sector Recovery Programme (ESRP), Government has, for some time now, been negotiating with the energy sector Independent Power Producers (IPPs) to restructure legacy debt of over a US$1 billion owed to the IPPs and Power Purchase Agreements (PPAs) to address the accumulation of arrears in the energy sector and work towards implementing critically needed reforms to make the sector more financially sustainable,” he noted.
“The final round of negotiations in June 2024 after several months of negotiations resulted in commercial agreements being reached on headline debt restructuring terms and renegotiated PPA terms with Amandi, Cenpower, Early Power, CENIT and AKSA,” the Finance Minister added.
