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Ghana may experience blackout as electricity producers plans shut down over $1.4 bln debt

By on July 22, 2020 0 136 Views

Ghana’s independent power producers, which produce almost half of the country’s electricity may shut down operations and stop power supply to the West African country over government debt that amounted to $1.4 billion as of June 30.
The shut down of power plants may result in power outages and blackout across Ghana, the West African country, which currently enjoys more stable electricity supply compared with its neighbour, Nigeria which continues to experience epileptics power supply over the years.
Nigeria electricity supply challenges remain intractable in spite of government huge resources, amounting to over $16 billion spent to build power generating plants and the efforts to divest government involvement in power generations and distributions in the Africa’s most populous country.
The debt continues “to accumulate, compelling the IPPs to contract costly loans to sustain their generations,” the Chamber of Independent Power Producers, Distributors and Bulk Consumers said in an emailed statement Tuesday.
“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.”
Ghana relies on private producers for nearly half of its peak demand of 2,700 megawatts. The 12-member group wants the government to share how it intends to repay its debt in a mid-year budget presentation on July 23. It should also include measures to enable the state-run Electricity Company of Ghana Ltd. to pay suppliers on time, the group said.
A spokeswoman for the Ministry of Finance couldn’t immediately comment when reached on phone.

-With Bloomberg report

Foreign Exchange

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