In a bid to avert an impending energy crisis, John Jinapor, the Ranking Member for Mines and Energy, has appealed to Independent Power Producers (IPPs) to reconsider their decision to shut down their plants on July 1.
He further urged the government to demonstrate commitment in resolving the outstanding debt issue that has led to this critical situation.
The IPPs, which account for 50 percent of Ghana’s generation mix, have threatened to halt operations unless the government provides an interim payment of 30 percent of the outstanding debt amounting to $1.7 billion owed to them.
Recogniding the gravity of the situation, Jinapor implored the IPPs to give the government and the nation more time to address their concerns.
“Please reconsider your decision towards shutting your plants on July 1. Please give the government and the nation some more time,” Jinapor appealed.
Expressing his dissatisfaction with the government’s handling of the matter, Jinapor criticised the Finance Minister’s approach, stating that selective and discriminatory payments were being made to preferred IPPs while neglecting others.
“The Finance Minister instead of dealing with the Chamber of IPPs is engaged in selective and discriminatory payment, selecting some preferred IPPs, paying them and leaving them to their own fate,” Jinapor remarked.
Highlighting the urgency of the situation, Jinapor called upon the government, particularly the President, to intervene promptly and ensure the swift resolution of the matter.
He also emphasised that the outstanding debt currently stood at approximately $1.7 billion, with mounting losses for the Electricity Company of Ghana (ECG) and substantial forex losses.
“The debt as we speak now is about $1.7 billion, and it keeps compounding. ECG’s losses today are over 30 percent, forex losses alone account for more than $300 million, fuel supplied that has not been paid runs into hundreds of millions of dollars,” Jinapor revealed during a press briefing in Accra.
Source: Ghanaweb.com
