Local news

Power crisis looms as Karpower threatens shutdown over $370m debt

The country’s power sector is on the brink of a crisis as Karpowership – the operator of the Aboadze power barge has warned it will suspend electricity supply unless the government settles an outstanding debt of $379 million.

The threat was issued during a meeting on February 10, 2025, between Energy and Green Transition Minister John Abdulai Jinapor and Karpowership officials.

The debt, owed by the state-run Electricity Company of Ghana (ECG), adds to the country’s ballooning energy sector liabilities, which have now surpassed $3 billion.

The Minister, acknowledging the urgency of the situation, appealed to Karpowership to hold off on any drastic measures while the new administration explores payment solutions.

However, with the International Monetary Fund (IMF) repeatedly flagging Ghana’s energy debt as a critical risk, the window for intervention is narrowing.

The IMF has urged sweeping reforms to prevent the sector from collapsing under mounting financial strain.

If Karpowership follows through with its threat, Ghana could face prolonged power outages, disrupting industries, businesses and households.

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