Minority disputes govt claims of restructuring $1bn legacy debt with IPPs

The Minority in Parliament has disputed the government’s claim of a successful restructuring of one billion dollars of debt owed Independent Power Producers.

Finance Minister Dr. Mohammed Amin Adam, during a joint press conference held on July 1, 2024, alongside the Bank of Ghana (BoG) and the International Monetary Fund (IMF) announced that the government had completed negotiations with the IPPs, providing fiscal space for an improved energy sector.

The negotiations, which spanned several months, focused on restructuring Power Purchase Agreements (PPAs) and clearing arrears accumulated over years of financial strain in the energy sector.

In his address, Minister Amin Adam highlighted the strategic importance of these agreements in revitalizing Ghana’s energy infrastructure and bolstering economic growth.

However, the Minority says there is no agreement yet. John Jinapor, the ranking Member on the mines and Energy committee speaking to the media alleged that the government had misused and misapplied the $1 billion borrowed in 2020 for the same purpose.

He has demanded a national dialogue on the state of Ghana’s economy, accusing the government of obfuscating the facts and failing to provide pragmatic solutions to the country’s economic challenges.

“So unfortunately, once again, this so-called restructuring of IPP debt, is nothing but a charade. In 2020, the government borrowed 3 billion Eurobond and promised us that they would use $1 billion to restructure IPP liabilities. As soon as the government got the money, they misused and misapplied that money.”

“Our latest check indicates that that money cannot be accounted for. Anytime the NPP tells you they are restructuring or renegotiating any energy sector contract, it ends up being bloated, it ends up causing serious liability. This is the time for the president to swallow his pride, for the head of the common amendment team, Dr Bawumia, to swallow his pride and call for a national dialogue on the state of Ghana’s economy.”

“This pretence of wishy-washy arguments and trial to obfuscate the real facts would not help. I think that is the time for Ghanaians to know what lies ahead for them in the future, so that whichever government would be assuming office from 2025 would be realistic, real with the people, and come up with pragmatic measures to resolve the problems confronting us.”

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