Sunon Asogli: IPPs yet to reach an agreement with govt – Apetorgbor
Independent power producer Sunon Asogli Power (Ghana) Limited has firmly rejected accusations from the government of bad faith, following comments by Finance Minister Dr. Mohammed Amin Adam. The minister criticized Sunon Asogli for shutting down its 560-megawatt plant amid ongoing debt negotiations, which the company argues were unavoidable due to significant unpaid debts from the Electricity Company of Ghana (ECG).
In a statement on October 16, Sunon Asogli announced the plant’s closure, citing ECG’s debt of $259 million, which does not include fuel costs, as of September 2024. This outstanding debt has reportedly created severe financial challenges, making it impossible for the company to maintain normal operations and prompting widespread power outages across parts of Ghana.
The government has since attempted to renegotiate terms with Sunon Asogli to restore stability to the power grid, but the company insists that the shutdown was necessary due to unsustainable operational costs and insufficient working capital. Dr. Elikplim Apetorgbor, CEO of the Independent Power Producers’ Association, backed Sunon Asogli’s decision, pointing to the government’s failure to meet its financial commitments.
Sunon Asogli’s leadership reiterated their willingness to negotiate but expressed frustration over delays in payment. According to a spokesperson, “We are still negotiating. No one goes into a negotiation to lose. It is always a win-win affair… But to the best of my knowledge, we are not there yet.”
The company’s leadership pointed to numerous unfulfilled promises from the Finance Ministry, adding, “You owe me about $259 million. Give me $60 million out of that so we can negotiate about the rest… We lack the working capital to resume or continue operations.” Sunon Asogli maintains that reliable funding is essential for them to restore consistent power supply across Ghana.
