Sunon Asogli Power (Ghana) Limited, an independent power producer, has denied allegations from the government of misconduct, in response to comments made by Finance Minister Dr. Mohammed Amin Adam criticized the company’s decision to close its 560-megawatt power plant while still in the midst of negotiating its debts.
On October 16, Sunon Asogli announced the closure of the plant due to the Electricity Company of Ghana’s (ECG) substantial debt of $259 million, excluding fuel costs, as of September 2024.
The power producer experienced significant financial difficulties as a result of the unpaid amount, which impacted its ability to conduct regular operations.
The shutdown resulted in numerous power outages in different areas of Ghana, causing many communities to have inconsistent access to electricity.
Quickly responding to the situation, the government acted swiftly to renegotiate terms with Sunon Asogli in order to bring stability back to the national power grid.
Sunon Asogli argues that they had to shut down the plant because the operational costs were increasing and there was not enough working capital.
Dr. Elikplim Apetorgbor, CEO of the Independent Power Producers’ Association, supported Sunon Asogli’s choice by arguing that the government had failed to fulfill its financial obligations, leaving the company with limited alternatives.
The company’s leaders restated their willingness to negotiate in order to find a lasting resolution to the debt problem and guarantee a reliable electricity supply nationwide.
I don’t recall agreeing to sign restructuring terms with anyone. We are continuing to discuss and work towards an agreement. Nobody enters a negotiation with the intention of losing. It is always a mutually beneficial situation. Amin Adam has consistently stated that if you do not agree to this, he will not provide payment. Signing indicates that we have come to a mutual agreement or understanding. As far as I know, there is no such thing. We have not reached our destination yet.
The Finance Minister has repeatedly assured Sunon Asogli that he will provide payment, but he has failed to fulfill those commitments. Today he is alleging that someone is acting with malicious intent. You owe me approximately $259 million, which is even more distressing.
“Give me $60 million for us to negotiate out of that $2 million. This is bad faith, you are saying. We are confronted with a difficult task. We do not have enough working capital to either resume or continue operations.”
