Independent power producer Sunon Asogli Power (Ghana) Limited has announced a one-week suspension of its earlier decision to shut down its 560 Megawatts power plant.
The company had initially declared an indefinite shutdown due to outstanding debts owed by the Electricity Company of Ghana (ECG).
The shutdown, which commenced at 6:00 pm on Monday, was attributed to delays in payment from the Government of Ghana (GOG)/Electricity Company of Ghana (ECG) and unproductive negotiations to resolve the financial challenges, according to a statement signed by Qun Yang, the Chairman of the company.
Facing operational constraints due to accumulating bills, Sunon Asogli Power considered the shutdown a last resort to address the financial challenges.
However, in a subsequent statement issued on the same Monday evening, the company announced the suspension of the shutdown, citing intervention and assurance from the Minister of Finance.
The statement read, “In view of the intervention and assurance from the Hon. Minister for Finance and Hon. Minister of State, we have resolved to suspend the plant shutdown for one (1) week.”
While specific details of the assurances were not disclosed, the statement mentioned an interim payment of $60 million in two tranches. The first tranche of $30 million was expected to be paid during the current week, with the second tranche scheduled for the week of December 11, 2023.
The impact of the initial shutdown decision was felt in some parts of the country, which were temporarily taken off the national grid. This development comes amid ongoing disputes between independent power producers and the government over outstanding debts, with threats of plant shutdowns if resolutions are not reached.
Ghana has recently experienced intermittent power cuts, but power sector authorities have assured the public that they are in control and that the nation will not return to the dark days of severe power cuts, commonly referred to as ‘dumsor.’ As of November 30, 2023, the government’s outstanding debts to independent power producers amounted to approximately $2.35 billion.
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