The Government of Ghana has disclosed that the ongoing parliamentary impasse is impacting the progress of debt restructuring agreements with several Independent Power Producers (IPPs).
Speaking at the Finance Ministry’s monthly economic briefing, sector Minister, Dr. Mohammed Amin Adam revealed that while three IPPs have either finalized agreements or are close to doing so, negotiations with two others – CEN Power and AMANDI have hit a roadblock due to the current stalemate.
“For government, we have met our side of the obligation. We concluded negotiations with the Independent Power Producers and some of them have signed off. For example, AKSA has signed off, and Asogli and CENIT are also about to sign off. What is outstanding is the one with CEN POWER and AMANDI because those two PPAs are required to go to parliament for parliamentary approval.”
He was however quick to add that efforts will be expedited to stabilize the energy sector and ensure 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.
