Ghana’s independent power producers have rejected a government proposal to restructure $1.58 billion in arrears owed them by the state, the head of the group told Reuters on Friday, warning non-payment could lead to a shutdown of their operations. The West African nation aims to cut $10.5 billion in interest payments on its external debt in three years to be able to successfully implement a $3 billion loan deal from the International Monetary Fund (IMF) aimed at addressing its worst economic crisis in a generation. Elikplim Kwabla Apetorgbor, head of the Ghana Independent Power Producers (IPP) Chamber, said the restructuring proposal had been “corporately and individually rejected”. Apetorgbor said the producers, which account for over 65% of available thermal power, were unwilling to make concessions and were also almost on the verge of switching off their plants. Minister of State at the Finance Ministry, Mohammed Amin Adam, said the decision was unfortunate. The IMF has blamed shortfalls in Ghana’s energy sector on factors including low tariffs and excess capacity amid take-or-pay contracts, which it said had cost the central government some 2% of GDP per year since 2019.
