Finance Minister Dr. Mohammed Amin Adam has criticized Sunon Asogli Power Plant Limited’s recent shutdown over a USD259 million debt owed by the Electricity Company of Ghana (ECG), describing the action as one taken in “bad faith.”
The halt of operations at the 560-megawatt power facility has stirred public concern about a potential resurgence of “dumsor”—the intermittent power outages that previously impacted Ghana’s economy.
Following the Annual IMF-World Bank Meetings in Washington, D.C., Dr. Amin Adam reassured the public that a resolution is close at hand.
He explained that negotiations to settle the debt are in the final stages, with an agreement expected within days to prevent further disruptions to Ghana’s power supply.
The Finance Minister highlighted recent steps in the negotiation process, noting that the Ministry of Finance had recently made a payment to Independent Power Producers (IPPs), which included a USD30 million installment to Sunon Asogli.
He stated that ECG, which led the debt discussions, had initially agreed with Asogli on this payment. However, Asogli later requested an additional USD30 million, which had not been part of the original agreement.
Dr. Amin Adam emphasized the government’s commitment to resolving the debt but maintained that Sunon Asogli must sign the settlement agreement before any additional payments are made.
“Asogli submitted the final agreement for our review. We reviewed it and are fine with it except for one issue which led to the shutdown. So when the Ministry of Finance made the one-off payment to all the IPPs, we were supposed to pay Asogli $30 million and subsequently, they made a case for another $30 million, but we did not agree to that”Dr. Amin Adam explained.
He noted that despite the Ministry’s readiness to pay, Asogli’s refusal to sign the agreement before receiving further payments was a point of contention.
He continued: “If it is part of the settlement agreement, why should I implement an agreement that has not been signed?”
The Minister expressed disappointment in Sunon Asogli’s ultimatum, saying: “So it will be as if we as a country don’t know our rights. Especially with elections approaching, it seems everyone thinks that by putting a gun to the government’s head and threatening to shut down, they can achieve their demands.”
He added: “They acted in bad faith”.