After productive talks with the ECG, the Chamber of Independent Power Producers of Ghana (IPPG) has decided to postpone the shutdown of power plants.
The Chamber instructed its members to shut down their plants between July 1 and July 8 if the government did not pay them 30 percent of the 1.73 billion dollars owed to them by July 8. However, the chamber said in a statement on Friday, June 30th, that the IPPs would keep running their power plants after July 1, 2023.
As part of the agreement, ECG has offered payments to all IPPs to keep them running in the meantime, giving the government of Ghana and ECG the amount of time they need to deal with the energy sector’s outstanding arrears and fulfil the terms of their contracts.
To avoid reverting to their earlier decision to shut down without further notice, the IPPs hope that this agreement will help deliver the intended goal of giving a permanent settlement to the energy sector’s debt.
During their announcement of the decision, the IPPs thanked the Chairman and Ranking Member of the Parliamentary Select Committee on Mines and Energy, as well as the members of the committee, for their quick intervention and helping to ensure a constructive engagement.
“The IPPs would also like to express their appreciation to their respective Lenders and shareholders for their support and involvement in these discussions for a resolution of the outstanding debt issues,” the Chairman of the IPPs stated.
“We are pleased to have reached an interim understanding with ECG, which enables us to continue our operations for the benefit of the good people of Ghana. We recognise the importance of our operations to the nation, and all the IPPs jointly remain committed to Ghana in delivering reliable power to the country. We also appreciate the support and collaboration we have received from the general public and all well-meaning Ghanaians throughout this process.”
The IPPs have pledged to continue working with the government and ECG in order to resolve the unfinished financial concerns and find a long-term solution.
