The Government of Ghana is said to have paid over U.S$1 billion to Independent Power Producers (IPPs) in the West African nation for the supply of power to the state.
The amount is part of huge debts owed the IPPs which produce about 55 percent of the power generated in the country.
Not too long ago, the Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDiB), which is the umbrella body of the IPPs, claimed that the Government of Ghana owed their members about U.S$1.5 billion.
In a recent statement issued by the Chamber, they threatened to withdraw their services if 80 percent the indebtedness worth $1 billion was not paid.
A statement issued by the Finance Ministry said this year, the government has paid more than US$1 billion to the IPPs, which is in addition to some GH¢2.7 billion paid by Electricity Company of Ghana Limited (ECG).
“The government has saved the energy sector over US$5 billion by relocating Karpowership Ghana Company Limited and securing agreements with CENIT Power Limited and Cenpower Generation Company Limited, with more savings to come,” the statement from the Finance Ministry explained.
However, the Chamber has refuted the claims, saying the U.S$1 million the government claimed to have paid to its members in 2020 was false.
According to the Chamber, the Government of Ghana’s indebtedness to their members now stands at U.S$1.5 million as at November ending.
Below is the statement issued by the Ministry of Finance
PRESS RELEASE – Dumsor Will Not Return- Government of Ghana saves energy sector $5 billion as it continues to deliver on the Energy Sector Recovery Programme – FOR YOUR ATTENTION