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IPPs vow to shut down Plant in three weeks if government fails to settle all outstanding indebtedness

IPPs vow to shut down Plant
Mr. Elikplim Apetorgbor


The Chamber of Independent Power Producers (IPPs) is threatening a possible shutdown of their plants in three weeks if government fails to meet their demands to settle all outstanding indebtedness.

According to the group, government owed them at least 1.4 billion dollars, but the government says it’s been working around the clock to get IPPs to agree to have these debts restructured.

But the Chief Executive Officer (CEO) of the Chamber, Mr. Elikplim Apetorgbor cries that members are struggling to keep their businesses afloat and has reiterated that the group’s June 30th ultimatum given to the government to settle its debt still holds.

He maintained that the IPPs cannot stretch themselves beyond the June 30 deadline.

“Our conditions or severity of our situation is something that cannot be negotiated. We have done everything possible to manage the situation but it has gone beyond our control. So really, nothing has changed our ultimatum to the government, that is the June 30th is still standing,” he said.

Mr. Apetorgbor is of the view that the International Monetary Fund’s (IMF) request to the Government of Ghana to undertake an audit of the power plants to ensure it is actually paying the right amount is a ploy to delay payment although they have the right to audit.

According to him, the issue with the delay is that “the consequences of any further delay cannot be averted if that is a strategy to delay payment to us.”

“We are open to any kind of audit. I can tell you that this thing has happened time and again – auditing of our invoices. Let me tell you it is just a strategy to buy time,” he said.

Meanwhile, information available has it that the power distribution company, the Electricity Company of Ghana (ECG) is leading the talks with the IPPs.

The intended shutdown could create a huge power shortfall as the IPPs control over 65% of the available thermal generation capacity in the country.

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