The government has revealed that the ongoing parliamentary impasse is delaying the finalization of debt restructuring agreements with Independent Power Producers (IPPs).
Speaking at the Finance Ministry’s monthly economic briefing, Dr. Mohammed Amin Adam, the sector Minister, confirmed that while agreements with three IPPs have been either completed or are nearing completion, negotiations with two others—CEN Power and AMANDI—have stalled due to the lack of parliamentary approval.
“We have met our obligations and concluded negotiations with the Independent Power Producers. For example, AKSA has signed off, and Asogli and CENIT are on the verge of doing the same.
The only remaining issue is with CEN Power and AMANDI, as their Power Purchase Agreements (PPAs) require parliamentary approval,” Dr. Adam explained.
Despite this setback, he assured that efforts will continue to expedite the resolution of these issues to stabilize the energy sector and ensure a sustainable power supply.
“We all know the story with parliament. Until parliament returns and approves those two PPAs they will remain outstanding.While we wait for parliament to approve those restructuring PPAs, I can say that we have been very religious with our side of the bargain”, the Minister added.
This financial impasse could exacerbate the country’s power crisis, triggering frequent outages, widely known as dumsor, and disrupting economic activities if not resolved.
As the festive season approaches, stakeholders are closely monitoring if power supply will be stabilised to avert a full-blown energy crisis.
The legislative body has been on an indefinite recess as the two main political parties remain locked in a dispute over which side commands the majority of seats.
“To say that the economy has not been affected would be an understatement”, Dr. Amin Adam admitted the effect of the stalemate on government business.
Parliament is expected to reconvene from its indefinite break on December 16, 2024.
