The Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has revealed that the government is expected to save approximately US$300 million following successful re-negotiations with Independent Power Producers (IPPs).
The agreement has reduced Ghana’s energy sector debt from US$1.5 billion to US$1.2 billion.
Speaking on the sidelines of the Future of Energy Conference organised by ACEP, Boakye, who also served on the committee that spearheaded the restructuring talks, said the negotiations were strategically designed to ease financial pressure on the government while safeguarding investor confidence.
Government to review agreement with Independent Power Producers
“The IPPs have been very magnanimous even though we have binding contracts with them. They’ve agreed to take a haircut, which I believe the Minister will formally announce soon,” he noted.
Ghana’s ballooning energy sector debt has, in recent years, strained relations between the government and IPPs, occasionally prompting shutdowns by some producers over delayed payments. These disruptions have raised concerns about the country’s energy security.
Boakye stressed that the restructuring is part of broader reforms aimed at ensuring long-term sustainability in the power sector.
“We are looking at savings of close to US$300 million on the debt and over a billion dollars in future payments. Our focus is to make the sector sustainable, reduce the fiscal burden, and keep the lights on,” he added.
SP/MA
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