Ghana: Pay Us Our $1.5billion Money To Guarantee Continuous Power Supply-IPPs To Gov’t

0
646
Elikplim Kwabla Apetorgbor, CEO of CIPDiB

The Chamber of Independent Power Producers,Distributors and Bulk Consumers (CIPDiB) in the Republic of Ghana, West Africa, has asked the Akufo-Addo-administration to prioritise the energy sector by paying the $1.5 billion debt owed its members as soon as possible to guarantee continuous supply of power.

The chamber, in a statement signed by Elikplim Kwabla Apetorgbor, CEO of CIPDiB, expressed worry over the breakdown of trust by the ECG and for that matter the government of Ghana.

According to the chamber, it was made to believe that the private sector participation in the electricity distribution business by PDS would bring an end to the delays in payment of power supplied to the state by its members.

However, CIPDiB noted in the statement that GoG/ECG did not honour their obligations.

“Sadly, the reality we have experienced is that the receivable accounts position of the Independent Power Producers has deteriorated since the PDS arrangement came into effect.

“When on the 8th of July 2019 the CIPDiB issued a statement about having gone for four months without any payment, PDS came out in rebuttal, claiming they had honoured their obligations to ECG. This was later found out to be untrue.

“The cumulative outstanding debt position of the GoG/ECG to IPPs alone has escalated to about USD$1.5 billion.

“The CIPDiB is once again compelled to ask that payment of the obligations of GoG/ECG be made as a matter of urgency. Immediate disbursement from funds that have been built up in the PDS accounts is essential to enable us continue to produce

Below is the full statement

Strengthening the power sector – a national priority.

Strengthening the power sector, particularly the electricity distribution sub-sector, was a key rationale for private sector participation in ECG. The technical and financial capability of the selected private sector partner would address the need for additional investment in the distribution system complementing the US$500 million that would be provided by the Millennium Challenge Corporation (MCC).

For us, members of the Chamber of Independent Power Producers, who provide over
2500MW reliable power generation capacity (representing over 60% of the total
generation in the power sector of Ghana), there were assurances that with private sector
participation in ECG, delays in being paid for the power we generate would be a thing of
the past. During countless stakeholder engagement sessions, MiDA and its Transaction Adviser, the International Finance Corporation (IFC), trumpeted these anticipated benefits of private sector participation.

It was indicated that, under the concession arrangement, the concessionaire would be
paying in full all invoices of the power producers within 10 days.

The concessionaire was also to put in place a revolving letter of credit which could be called upon on the 11th day for settlement of the invoices.

Furthermore, the concessionaire was expected to replenish the revolving letter of credit in two weeks to ensure that there was always sufficient funding to cover the power produced by the Generators. Sadly, the reality we have experienced is that the receivable accounts position of the Independent Power Producers has deteriorated since the PDS arrangement came into effect!

When on the 8th of July 2019, the CIPDiB issued a statement about having gone for four months without any payment, PDS came out in rebuttal claiming they had honored their obligations to ECG. This was later found out to be untrue!

The cumulative outstanding debt position of the GoG/ECG to IPPs alone has escalated to about USD$1.5 Billion! The CIPDiB is once again compelled to ask that payment of the obligations of GoG/ECG be made as a matter of urgency. Immediate disbursement from funds that have been built up in PDS accounts is essential to enable us continue to produce

The energy sector is clearly under serious threat and we would urge the Government of Ghana and its agencies, including ECG and MiDA, as well as the MCC to co-operate to ensure that decisions are taken that enable Ghanaians to have access, affordably, to reliable energy supply.

The CIPDiB, as a key stakeholder in the sector, is willing to engage in consultations about the process of securing private investment in the electricity distribution sub-sector in Ghana, and the interface with the generation sub-sector.

Our experience in bringing in billions of dollars of private sector investment into power
generation in Ghana makes us confident that this can also be done in the distribution
subsector.

With credible, transparent and fair processes, the right caliber of investors can
be attracted.

We remain committed to helping Ghana strengthen its power sector so as to serve the
needs of Ghanaians.

Elikplim Kwabla Apetorgbor
Chief Executive Officer.

 

Source:www.energynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here