Sunon Asogli Power Ghana Limited, the largest independent power producer in the Republic of Ghana, West Africa, is reeling under financial distress due to the government’s inability to pay for power supplied to the country’s power distribution company, ECG.
The West African nation owes members of the Chamber of Independent Power Producers, Bulk Distributors and Consumers (CiPDiB) a whopping GHc1.3 billion.
Asogli, which is a member of the IPP chambers, is worried about the development, which it says is hindering its progress.
Speaking in an exclusive interview with energynewsafrica.com, Chairman of Sunon Asogli Power Ghana Ltd, Mr Yang Qun could not quote the exact figure but said the amount is huge.
According to him, the lack of funds was affecting their infrastructural development.
“Definitely, we are at the brink of our efforts because there is no cash flow. Cash flow chain could and obligating the banks and salary pay roll. That is why we are very close to the cash flow problem. But it could break anytime soon.”
Despite facing financial challenges, he said the company increased its power generating capacity by 33 percent last year to up its power operation from 200MW to 360MW.
This, Mr Yang said brings their power generating capacity in the country to 560MW.
“It increased about 33 percent last year. So production is good, however, we are still facing some challenges. The big challenge remains cash problem. Everybody knows about that. We are trying and working with the government, the Ministry of Finance, Ministry of Energy trying to help us with cash flow problems,” he said.
Going foward, Mr Yang said Ghana was a healthy and a fertile business environment for power production and urged the government to swiftly help them to do well.
“We will continue pressing…we think Ghana is a good country for investment, so we are still interested in Ghana. I believe the cash flow problem will be resolved in a short time with an effort from the government.”