
Independent power producer Sunon Asogli Power (Ghana) Limited has dismissed accusations from the government of acting in bad faith, following comments made by Finance Minister Dr. Mohammed Amin Adam, who criticized the company for shutting down its 560-megawatt power plant amid ongoing debt negotiations.
In a statement issued on October 16, Sunon Asogli attributed the plant’s closure to the Electricity Company of Ghana’s (ECG) substantial outstanding debt of $259 million, excluding fuel costs, as of September 2024.
This unpaid debt has placed significant financial strain on the power producer, affecting its ability to maintain regular operations.
The shutdown has resulted in widespread power outages across several regions of Ghana, leaving many communities facing an unreliable electricity supply.
In response, the government acted swiftly to renegotiate terms with Sunon Asogli in an effort to restore stability to the national power grid.
Sunon Asogli asserts that the plant’s closure was a necessary measure prompted by rising operational costs and inadequate working capital.
Dr. Elikplim Apetorgbor, CEO of the Independent Power Producers’ Association, defended Sunon Asogli’s decision, arguing that the government had failed to meet its financial obligations, leaving the company with limited options.
The company’s leadership emphasized their willingness to engage in negotiations to reach a lasting solution to the debt issue and ensure a consistent power supply across the country.
“I am not aware when we have agreed to sign restructuring terms with anyone. We are still negotiating. No one goes into a negotiation to lose. It is always a win-win affair. And he [Amin Adam] has always maintained a position that if you will not accept this, I am not going to pay you. And even if we are signing, what it means is that we have reached a meeting point. But to the best of my knowledge, there is nothing like that. We are not there yet.
“He [the Finance Minister] has promised countless times to make payment to Sunon Asogli but he has not honoured those obligations or those promises. But today he’s saying that somebody is acting in bad faith. What is worse than that? You owe me about $259 million.
“Give me $60 million out of that for us to negotiate about the $2 million. And you are saying this is bad faith. We are faced with a challenge. We lack the working capital to resume operation or to continue operation.”