Independent power producer Sunon Asogli Power (Ghana) Limited has decided to suspend the shutdown of its 560 Megawatts power plant for one more week.
The decision to temporarily halt the plant closure comes after an assurance from the Minister of Finance regarding outstanding debts owed by the Electricity Company of Ghana (ECG).
The company initially announced an indefinite shutdown on Monday evening due to delays in payment from the Ghanaian government/ECG and unproductive negotiations to find a resolution.
The shutdown was intended to address the significant impact of accumulating bills on the company's operational capacities.
However, in a subsequent statement issued on the same Monday evening, Sunon Asogli Power revealed the suspension of the plant shutdown based on assurances from the Minister of Finance.
The statement did not provide detailed information about the assurances but mentioned the interim payment of $60 million in two tranches.
“In view of the intervention and assurance from the Hon. Minister for Finance and Hon. Minister of State, we have resolved to suspend the plant shutdown for one (1) week,” the statement noted. It outlined the payment plan, with $30 million expected in the current week and the second tranche in the week of December 11, 2023.
The recent threat of shutdowns by independent power producers, including Sunon Asogli Power, highlights concerns over government indebtedness affecting their operations. The ongoing power generation challenges have led to intermittent power cuts in various parts of the country.
As of November 30, 2023, the government owed the Independent Power Producers about $2.35 billion, prompting calls for a resolution to ensure sustainable power generation in the country.