The Electricity Company of Ghana (ECG) last Thursday paid the first tranche of US$30million out of the US$60million it committed to paying Sunon Asogli Power Ghana Limited, the country’s largest independent power generation company after the power producer threatened to shut down its 560MW power plant indefinitely.
The power distribution company, which is responsible for distributing electricity in southern Ghana owes Sunon Asogli Power Ghana Limited about US$840million, comprising $440million receivables and $400 million Power Purchase Agreement related claims.
The huge debt, according to the power distribution company, is having a serious impact on its operational capacity and making it impossible to continue to operate without addressing the financial challenges.
On Monday, December 4, Sunon Asogli wrote to the Managing Director of ECG Mr Samuel Dubik Mansubir Mahama and copied, the Minister for Finance, Energy Minister Dr Matthew Opoku Prempeh, PURC, GRIDCo and Energy Commission informing them about the intended shut down of their power plant by 6pm on Monday.
Bearing in mind the consequences of the shutdown of the plant, the Minister for Finance intervened and gave a firm assurance of paying US$60million in two tranches.
Per a letter written to the ECG MD by the Chairman of Sunon Asogli Power Ghana, Mr Qun Yang, the ECG was supposed to pay US$60million with first tranche of US$30million last week and the second tranche of US$30million this week.
Speaking on Accra based -Citi FM monitored by energynewsafrica.com, Managing Director of ECG Samuel Dubik Mansubir Mahama Esq confirmed the payment of US$30million to Sunon Asogli Power Ghana Limited.
“Sunon Asogli has received $30 million from the government of Ghana, and the conversations are far advanced for a second tranche of another $30 million to be paid to them. Sunon Asogli has always been an integral part of our growth.
They are very good partners that we intend to grow with,” Mahama said.
He further highlighted plans to renegotiate outstanding Power Purchase Agreements (PPAs) with Sunon Asogli, aiming to make them more efficient and cost-effective for the benefit of the Ghanaian people.
A source within Sunon Asogli Power Ghana Limited confirmed receipt of the first tranche stating that they are hoping to receive the second tranche this week.
Source: https://energynewsafrica.com