“The Government of Ghana should let us know how it intends to settle all the debts it owe independent power producers in the country,” Elikplim Kwabla Apetorgbor, CEO of CIPDiB has said.
Ghana’s Minister for Finance, Ken Ofori-Atta is expected to present the 2020 mid-year budget in Parliament on Thursday, July 23.
The mid-year budget will detail the government’s efforts for the past six months and how it intends to manage the country for the remaining half of the year.
The country’s energy sector is saddled with debts.
According to the Chamber of Independent Power Producers Bulk Distributors and Consumers (CIPDiB), cumulative indebtedness to its members as at 30th June, 2020, is about US$1.4 billion.
In a statement copied to energynewsafrica.com, the Chamber said its members have resorted to loans in order to sustain power generation to serve the country.
It said the situation is grim and could lead to shut down of power plants if it is not resolved immediately.
“As at 30th June, 2020, the cumulative indebtedness to the IPPs is about USD$1.4 billion and continue to accumulate, compelling the IPPs to contract costly loans to sustain their generations. This situation is grim and there is a real danger of IPPs shutting their plants if the situation is not resolved in the immediate term.
“The mid-year budget should include measures to ensure that the shortfall in ECG’s revenues are addressed as and when they occur to ensure that IPPs and others who supply products or services to ECG are paid on time.
“IPPs cannot be responsible for the government’s subsidies and other obligations,” the statement said.
Source:www.energynewsafrica.com
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