Sunon Asogli Power Rejects Government’s Bad Faith Claims Amid Plant Shutdown and Debt Negotiations
Sunon Asogli Power Rejects Government's Bad Faith Claims Amid Plant Shutdown and Debt Negotiations
- The unpaid debt has placed significant financial strain on the power producer
- CEO of the Independent Power Producers’ Association, defended the company's actions
- The shutdown resulted in widespread power outages across Ghana
Independent power producer Sunon Asogli Power (Ghana) Limited has rejected claims from the government that it is acting in bad faith, following comments from Finance Minister Dr. Mohammed Amin Adam criticizing the company’s decision to shut down its 560-megawatt power plant during ongoing debt negotiations.
In a statement on October 16, Sunon Asogli announced the plant’s closure, citing the Electricity Company of Ghana’s (ECG) substantial outstanding debt of $259 million—excluding fuel costs—as of September 2024. The unpaid debt has placed significant financial strain on the power producer, hampering its ability to operate normally.
The shutdown resulted in widespread power outages across Ghana, leaving many communities with unreliable electricity supply. In response, the government quickly sought to renegotiate terms with Sunon Asogli in an effort to stabilize the national power grid.
Sunon Asogli asserted that the closure was a necessary response to rising operational costs and inadequate working capital. Dr. Elikplim Apetorgbor, CEO of the Independent Power Producers’ Association, defended the company’s actions, arguing that the government has not fulfilled its financial obligations, leaving Sunon Asogli with limited options.
The company’s leadership emphasized their willingness to negotiate a lasting solution to the debt problem and ensure a consistent power supply across the nation.
“We have not agreed to any restructuring terms yet; we are still negotiating. No one enters a negotiation intending to lose. It should be a win-win situation.
The Finance Minister has maintained that if we do not accept his terms, payments will not be made. To my knowledge, we are not at that point,” they stated.
They further pointed out, “The Minister has repeatedly promised to make payments to Sunon Asogli but has not honored those commitments. Yet he claims someone is acting in bad faith. What could be worse than owing $259 million? If he could provide just $60 million, we could negotiate further about the remaining amount. We are facing significant challenges and lack the working capital to continue operations.”
