Finance

We can’t guarantee uninterrupted power supply if GH¢ 1.4bn debt isn’t paid – CIPBiD

Independent Power Producers in Ghana have said if the government fails to pay some GH¢ 1.4bn owed them “as soon as possible”, they cannot promise uninterrupted power supply.

The Chief Executive Officer of the Chamber of Independent Power Producers, Power Distribution Companies and Bulk Consumers, Ghana (CIPBiD), Mr Elikplim K. Apetorgbor, told Kwabena Bobie Ansah on The Citizen Show on Saturday, 25 July 2020 he hopes the government makes provisions for the payment soon enough.

Ahead of Thursday’s mid-year budget review presented to Parliament by Finance Minister Ken Ofori-Atta, CIPBiD issued a statement in which it said the “government’s cumulative indebtedness to them is compelling them to contract costly loans to sustain their generations”, and reminded the government to capture its indebtedness to the Chamber in the mid-year budget.

The statement added: “This situation is grim and there is a real danger of IPPs shutting their plants if the situation is not resolved in the immediate term.”

The Chamber, thus, urged government to include measures to ensure that the shortfalls in the Electricity Company of Ghana’s (ECG) revenues are addressed as and when they occur, to ensure that IPPs and others who supply products or services to the ECG were paid on time.

It warned that the IPPs cannot be responsible for government’s subsidies and other obligations.

Mr Apetorgbor said although the debt issue “has not been specifically provided in the mid-year budget”, he “listened to an interview where the deputy finance minister admitted that they have a provision for us, so, we are standing by to hear from them”.

He said “continuous supply of power can only be guaranteed by government paying us”, adding: “If it is not paid, we cannot guarantee continuous supply and it is not something like a threat to pay but that is the real situation”.

Power plants, he noted, “are run by money and if the money is not there, what can we do?”

“We have borrowed and borrowed and every day, we receive threatening letters from our lenders”, he bemoaned.

According to him, the Chamber expects the debt to be cleared in “the immediate term”.

Proffering solutions to the debt-riddled power sector, Mr Apetorgbor told Bobie Ansah that: “I’m personally worried about the development”, explaining: “Sincerely speaking, this debt position is totally avoidable”.

The government, he suggested, “should take pragmatic steps to run the sector as a serious business”.

In his view, “continuous influence and interference from politicians will continue to treat the sector this way”.

“If you look at the ECOWAS sub-region, it’s only in Ghana that you see this kind of case”, he noted, pointing out that in neighbouring Togo and Benin, for instance, the suppliers “do about 98 per cent collection of revenue from power sales as against about 86 per cent of our ECG”.

“It means our distribution utility is not doing fair enough compared to what is happening in the sub-region. Meanwhile, in Ghana, we can boast of an effective grid or even distribution system”, he said.

CIPBiD’s Board of Directors is chaired by Togbe Afede XIV, President of the National House of Chiefs.

Its other Board members include Kwame Pianim, Finance and Business Consultant and former Chairman of the Public Utilities and Regulatory Commission (PURC); Samuel Nana Brew- Butler, Director, Cenpower Generations; Qun Yang, Chairman, Sunon Asogli Power Ghana Limited; Reginald France, Board Member, Early Power Limited; and Daniel Acheampong, Chief Executive Officer, Volta Aluminium Company (Valco).

The remaining are Bhavesh Kumar, Managing Director, B5 Plus Limited; Murat Captug, Country Director, Aksa Energy; Kelvin Wu, Managing Director, BXC; Volkan Buyukbicer, Country Manager, Karpowership; Victor Noja, CEO, CENIT Power; Norbert Anku, Managing Director, Enclave Power and David Kwadzo Ametefe, former Commissioner, Public Utilities and Regulatory Commission (PURC).

 

Source: Class FM

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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