Sunon Asogli defends plant shutdown amid $259m debt dispute

Accra, Ghana - October 30, 2024 - Independent power producer Sunon Asogli Power Ghana Limited has refuted accusations of bad faith after shutting down its 560-megawatt power plant due to unpaid debts totaling $259 million, excluding fuel costs, owed by the Electricity Company of Ghana (ECG).

The shutdown has resulted in widespread power outages across Ghana, prompting the government to renegotiate terms with Sunon Asogli to restore stability to the national power grid. Dr. Elikplim Apetorgbor, CEO of the Independent Power Producers' Association, defended Sunon Asogli's decision, criticizing the government for failing to honor its financial commitments.

Sunon Asogli remains open to negotiations to resolve the debt issue and ensure consistent power supply. However, the company's leadership criticized Finance Minister Dr. Mohammed Amin Adam for accusing them of bad faith.

“I am not aware when we have agreed to sign restructuring terms with anyone. We are still negotiating. No one goes into a negotiation to lose. It is always a win-win affair. And he [Amin Adam] has always maintained a position that if you will not accept this, I am not going to pay you. And even if we are signing, what it means is that we have reached a meeting point. But to the best of my knowledge, there is nothing like that. We are not there yet.

“He [the Finance Minister] has promised countless times to make payment to Sunon Asogli but he has not honoured those obligations or those promises. But today he’s saying that somebody is acting in bad faith. What is worse than that? You owe me about $259 million.

“Give me $60 million out of that for us to negotiate about the $2 million. And you are saying this is bad faith. We are faced with a challenge. We lack the working capital to resume operation or to continue operation.”

Source: Lead News Online