Govt To Sign Off IPPs Debt Restructuring Agreement March 2024

The government has indicated it is targeting the end of March 2024 to sign off the debt restructuring agreement reached with Independent Power Producers (IPPs).

According to sources, the government has also stated that the debt owed the power producers have been reduced to about $700 million.

“We are targeting the end of March to conclude the restructuring. We have also been able to reduce the debt to $700 million, which we believe is a significant step in the negotiations”, a source told the paper.

Already, the government has indicated that it has made payments since 2023 to some IPPs.

The payments commenced after the government reached some agreements with about 5 Independent Power Producers in July 2023 when the debt was pegged at $1.6 billion.

In 2023, some IPPs threatened to cut power supply to power if debt owed them are not cleared.

According to the persons working on the negotiations, the debt got to alarming levels, which prompted the IPPs to issue the threats after which the payments began.

The term sheets have already been exchanged with about five of the independent power producers for further scrutiny as at February 28, 2024, the source who refused to be named stated.

There has not been any objection raised yet with the terms proposed.

Also the government is working to bring two more independent power producers to participate in the negotiations to restructure the debts.

It is expected that the restructuring will be concluded by end of March 2024 after the agreement is signed.

The government has also made some agreements with the Electricity Company of Ghana (ECG) to receive some payments.