Ghanaians may face Dumsor again due Government debt chaos- Mahama
Former President John Dramani Mahama has voiced deep concern regarding the government's approach to handling indebtedness to Independent Power Producers (IPPs) in Ghana. The recent threat of power cuts by Asogli Power Plant due to unpaid debts has heightened uncertainties for the Ghanaian population.
Sunon Asogli, facing financial challenges due to outstanding payments from the government, initially announced an indefinite suspension of operations at the 560MW Sunon Asogli Power Plant. However, the company later rescinded this decision following interventions and assurances from the Minister of Finance and Minister of State.
In a formal statement, Sunon Asogli outlined the specifics of the resolution, stating, "Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche, $30 million, is expected to be paid this week, with the second tranche scheduled for the week of December 11, 2023."
The communication was addressed to the Electricity Company of Ghana (ECG), and the company expressed regret over the need for such drastic measures, citing "avoidable delays in payment from the GoG/Electricity Company of Ghana for power supplied" and "unproductive engagements to find an amicable solution" as reasons for the suspension.
Mahama's apprehension stems from the potential ripple effect if more IPPs follow suit. The precarious situation raises questions about the overall stability of the country's power supply.
The ongoing challenges in the energy sector underscore a broader issue of financial management and commitment by the government. The former president's concerns reflect a broader sentiment about the need for effective strategies to address outstanding debts to ensure the uninterrupted operation of vital infrastructure.
As Ghana grapples with these issues, the resolution of Sunon Asogli's situation serves as a temporary reprieve. However, a comprehensive and sustainable approach to addressing the financial obligations of IPPs remains imperative to safeguard the country's energy security and economic stability in the long run.
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