Finance Minister Dr. Mohammed Amin Adam has announced that the government has successfully concluded negotiations with five of the country’s seven Independent Power Producers (IPPs).
These negotiations are expected to yield an estimated $6.6 billion in savings over the lifetime of the Power Purchase Agreements (PPAs).
The IPPs involved in these successful negotiations include AKSA, Amandi, CENIT, Cenpower, Karpowership, Early Power, and Sunon Asogli.
Dr. Mohammed Amin Adam made this announcement during the presentation of the 2024 Mid-Year Budget Review in Parliament on July 23.
He stated, “We have concluded our negotiations with five of the seven Independent Power Producers, resulting in estimated savings of $6.6 billion over the lifetime of the Power Purchase Agreements (PPAs).”
Dr. Amin Adam had first hinted at the successful negotiations during a joint press briefing with the IMF and the Bank of Ghana earlier this month.
“As part of the implementation of the Energy Sector Recovery Programme (ESRP), Government has, for some time now, been negotiating with the energy sector Independent Power Producers (IPPs) to restructure legacy debt of over a US$1 billion owed to the IPPs and Power Purchase Agreements (PPAs) to address the accumulation of arrears in the energy sector and work towards implementing critically needed reforms to make the sector more financially sustainable,” he noted.
“The final round of negotiations in June 2024 after several months of negotiations resulted in commercial agreements being reached on headline debt restructuring terms and renegotiated PPA terms with Amandi, Cenpower, Early Power, CENIT and AKSA,” the Finance Minister added.
