Sunon Asogli Power (Ghana) Limited has reopened its 560MW power plant after Energy Minister Herbert Krapa and Finance Minister Mohammed Amin Adam intervened.
The ministers helped to ease the company’s financial difficulties by releasing emergency funds.
The Electricity Company of Ghana (ECG) failed to make past-due payments, which resulted in the power plant’s closure in October 2024, making it impossible for Sunon Asogli to continue operating.
In September 2024, the business stated that ECG owed it $259 million in net receivables (not including fuel).
Although Sunon Asogli did not bill ECG for idle capacity, Sunon Asogli disclosed that between January and September 2024, the debt increased by 23%, with only 22.6% of invoices paid during that time through the Cash Waterfall Mechanism.
However, the company, in a statement on Monday, said: “We have submitted our final version of the Restructuring Terms Sheet to the Ministry of Finance and ECG in August for finalization and signing soon. We are confident that a win-win solution that will ensure the stability and reliability of Ghana’s energy will be achieved.”
“We hope that the ECG can adhere to the spirit of the contract and diligently honour their financial obligations in the PPA.”
Sunon gave Vice President Dr. Mahamudu Bawumia credit for stepping in to make sure the money was paid.
It is anticipated that the restart of operations will stabilize the electricity supply and allay worries about the energy sector’s financial viability in Ghana.
KA
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