Gov’t moves to stop ‘dumsor’

The government has released funds to settle part of its indebtedness to the Independent Power Producers (IPPs), following the latter’s threats of shutting down their power plants infinitum.

According to the Deputy Minister for Finance, Charles Adu Boahen, the government has been making financial commitment to the IPPs and wondered why they have constantly been issuing threats to it.

“The IPPs are getting paid,” Mr Charles Adu Boahen said on the telephone. The Chamber of Independent Power Producers Bulk Consumers and Distributors (CIPDiB), the umbrella body of the IPPs, last Thursday, November 12, 2020, served notice to the CEO of Ghana Grid Company (GRIDCo) of their intention to shut down their power plants over failure of government to settle its indebtedness.

The IPPs claimed the government owed them to the tune of US$1.5 billion as at July this year.

The government managed to settle part of the debt, though it is not clear how much.

The Chronicle’s sources within the IPPs Chamber said the government started crediting the account of their members last Friday, after their threat.

The sources said that they are hoping that by Monday, each of the IPPs would have received their portion of the amount released.

Though the source could not tell the quantum of the amount, it said it was below their expectations.

Ghana has about 21 power plants with a total installed capacity of about 5,050MW.

Out of the 21 power plants, the state owns 10 with a total capacity of 2,270MW while the IPPs own 11 with a total capacity of 2,780MW.

 

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