Government is set to save $300 million following successful renegotiations with Independent Power Producers (IPPs), which have reduced the country’s outstanding energy sector debt from $1.5 billion to $1.2 billion.
The disclosure was made by Ben Boakye, Executive Director of the Africa Centre for Energy Policy (ACEP) and a member of the committee that spearheaded the restructuring talks.
Mr. Boakye explained that the process was designed to ease the financial burden on government while safeguarding investor confidence in Ghana’s power sector.
Speaking on the sidelines of the Future of Energy Conference hosted by ACEP, he praised the cooperation of the IPPs:
“The IPPs have been very magnanimous, even though we have binding contracts and agreements with them. They have agreed to a haircut, which I am sure the Minister will announce at some point. We are just here to help make the power sector sustainable. We are looking at close to about $300 million on the debt and also over a billion in future payments.”
The long-standing debt crisis between government and IPPs has, in recent years, strained relations in the sector. Some producers were forced to shut down operations due to delayed payments — disruptions that occasionally threatened power supply and raised concerns about energy security.
The renegotiated deal, according to experts, marks a major step towards restoring financial stability in the power sector while ensuring reliable electricity supply for businesses and households.
