Debt restructuring: No deal has been reached with government – IPPs

The Independent Power Generators Ghana has described as misleading the government’s announcement that it has reached an agreement with the IPPs to restructure the debt owed the power generators operating in the country.

According to the Finance Minister, Dr Mohammed Amin Adam, the agreement includes the IPPs accepting a reduction in their claims (haircut), allowing the government to spread payment over five years.

In a statement copied to Citi Business News, Chief Executive Officer of the Independent Power Generators, Ghana, Dr. Elikplim Kwabla Apetorgbor said, the last engagement of some IPPs with the Government of Ghana’s negotiating team occurred in April 2024, and since then, no agreement on any terms has been reached.

“It has come to our attention that the Minister of Finance has made public statements indicating that a deal has been reached with Independent Power Producers (IPPs) regarding debt restructuring. We must categorically state that this assertion is misleading and inaccurate”.

“The last engagement with some of the IPPs and the Government of Ghana’s negotiating team occurred in April [2024] and since then, no agreement on any terms has been reached. The posture and generalisation that the government has secured a debt restructuring agreement with the IPPs are misleading and amount to public deception”, he added.

“We urge the Minister of Finance to refrain from making such inaccurate statements and to engage in transparent and honest communications”, he pointed out.

He, however, noted that the IPPs remain committed to constructive dialogue and finding a mutually beneficial resolution to the ongoing discussions.

Citi Business News sources note that only two IPPs, CenPower and Amandi have accepted the government’s proposal to restructure the IPPs’ debt.

The rest, Karpowership, Twin City Energy, Sunon Asogli, Cenit Energy and AKSA rejected the haircut proposal by the Government of Ghana