Ghana's power producers urge government to pay $1.4 bn debt
Ghana's independent power producers have rejected a government proposal to restructure a $1.4 billion debt owed them by the West African nation, the chief executive of their lobby group said on Thursday.
Elikplim Kwabla Apetorgbor, the head of Ghana Independent Power Producers Chamber, told Reuters they could not guarantee power generation if the government failed to meet debt its obligation.
"Members have accrued huge arrears with their suppliers for which they are already in default and accruing associated penalties. We cannot continue defaulting on our obligations," Kwabla Apetorgbor said.
The gold, cocoa and oil-producing country is struggling with its worst economic crisis in a generation.
It secured a staff-level agreement with the International Monetary Fund (IMF) in December for a $3 billion loan, but needs to restructure its debt and get assurances from its lenders as a condition for the IMF's board to sign off the programme.
Ghana defaulted on its external debts in December and has sealed a domestic debt swap. It has requested a restructuring of its bilateral debts via the G20's Common Framework vehicle.
The power producers are resisting a move by the government to restructure the debt owed to them.
"It's very important government prioritize payment to us at this critical point," Kwabla Apetorgbor said, adding that turning the power off is not an option for now.
The independent power generators control over 60% of Ghana's available thermal power generation capacity, he added.
"But if we are constrained, sincerely we can't guarantee generation," Kwabla Apetorgbor said.
Source: Reuters
Trending News
Ghana ready to partner with Saudi Arabia for energy security — Napo
08:472024 polls: Bawumia begins nationwide campaign today without a running-mate
06:05AG’s advice to EOCO apt - Anti-corruption crusader
10:05I’m 100% certain lithovit submitted to me for testing at CRIG is liquid – CRIG's lead scientist
07:31Bawumia hailed for religious diversity after visit to Pope Francis
05:41I’ll form Jail Them Advocacy Group after NPP loses power in 2025 - Hopeson Adorye
10:00'It's a disgrace for Akufo-Addo gov't' – Aduomi on vote-buying at Ejisu by-election
15:11‘You can never be the one to choose your successor’ – Mahama tells Akufo-Addo, 'It's God who crowns kings'
03:19World Press Freedom Day: There must be sustainability, support for media outlets in Ghana – PRINPAG
09:12NPP retains Ejisu seat; Kwabena Boateng elected MP
07:00