Sunon Asogli, ECG to discuss $60m debt today in crucial meeting

Officials from the Electricity Company of Ghana (ECG) are expected to have a crucial meeting with independent power producer Sunon Asogli Power (Ghana) Limited today December 8, 2023.

The focal point of the meeting is the formulation of pragmatic payment plans to address the substantial $60 million debt owed to Sunon Asogli Power by the Government.

The meeting comes in the wake of Sunon Asogli Power’s abrupt cessation of operations on December 4, 2023, attributing the decision to the government’s prolonged delay in meeting its financial commitments to power plants. Notably, the Finance Minister, Ken Ofori-Atta, intervened, promising swift action to settle the outstanding debt.

In response to the Finance Minister’s commitment, Sunon Asogli Power opted to defer its shutdown decision for a week. The power producer underscored the severe impact of the accrued unpaid bills on its operational capabilities, emphasizing the imperative need to promptly address the financial hurdles.

In an official communication, Sunon Asogli Power outlined the government’s pledged resolution, stating, “Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche USD30 million to be paid this week and the second tranche in the week of December 11, 2023.”

The outcome of the impending meeting between ECG and Sunon Asogli Power carries significant implications for the energy landscape in Ghana. It not only seeks to address the financial woes of the power producer but also underscores the broader challenges and responsibilities associated with sustaining a reliable and consistent power supply in the nation. Stakeholders will be closely monitoring the discussions as they unfold in the coming days.