Forex shortfall accounts for majority of our debts – ECG MD

The acting Managing Director (MD) of ECG, Ing. Asamoah David has revealed what is mainly accounting for the debts owed the Independent Power Producers (IPP).

Speaking in an interview on Joy News, Saturday, November 23, Ing. Asamoah David explained that the volatility of the cedi to the dollar rates is hindering the company from fulfilling its financial obligations.

“The truth is that the majority of these debts are a result of a forex shortfall. Each month, just from forex, we lose about 37 million. So, if you get the money and pay, getting the dollars becomes a problem. Sometimes, you will even make a payment, and it will take days or weeks before the IPPs receive it because of the dollar,” he said on Joy Newsfile.

Currently, ECG owes the nine Independent Power Producers (IPPs) millions of US dollars. In October, one of the plants, Sunon Asogli completely shut down due to a debt of $259 million.

The other eight IPPs in the country have also complained about the government’s inability to pay them for the power they generated and distributed to the nation.

Ing. Asamoah said the company would have paid its debts if payments were made in cedis and not dollars.

“If it were in cedis, I would pay. But now, when I pay the money, the banks have to get the dollars and convert them before they pay the IPPs, and by the time they pay, if the dollar increases, it means we still have a shortfall,” he noted.

The Acting ECG MD disclosed that arrangement have now been made as to how the debts will be paid, stating that the debts will be shared amongst ECG and the Energy Ministry.

According to him, the company is doing its best to overcome the challenge with payments.

“So, for the payments, we are doing our best to pay,” he said, adding, “We have an agreement with them now on how it’s going to be paid. ECG will pay part, and the Ministry will come in. Just yesterday [Friday], they sent me a message saying they have agreed.”

He stated that Sunon Asogli would resume operations in the coming weeks, and others who had reduced their power supply would also increase their output.

The IPPs are private energy firms that produce and supply additional power to the nation in support of the Akosombo plant, which is a state-owned company.

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