The Ministry of Finance has instructed the Controller and Accountant General to release $30 million to Independent Power Producer (IPP) Sunon Asogli in a bid to alleviate debt issues that forced a shutdown of its 560-megawatt power plant. This decision comes as concerns rise about a potential return of “dumsor,” Ghana’s term for recurring power outages, which could have serious consequences for the national economy.
The shutdown resulted from an outstanding $259 million debt owed by the Electricity Company of Ghana (ECG), highlighting persistent financial challenges within Ghana’s energy sector. Sunon Asogli’s spokesperson, Elikplim Apertogbor, voiced frustration over slow negotiations, stating, “Since we shut down, we’ve been having some verbal engagement, but [the Finance Minister] remains unwilling to meet us until this is addressed.” He emphasized that promises by the Finance Minister to meet payment commitments remain unfulfilled.
Ben Boakye, Executive Director of the Africa Center for Energy Policy, confirmed the processing of the $30 million payment to Sunon Asogli, paving the way for a resumption of power production. However, he noted that structural inefficiencies, revenue collection problems, and leadership challenges at ECG continue to impact the energy sector, raising concerns about sustainability.
“These shutdowns will keep recurring because the situation is dire,” Boakye stated. He argued that the ECG’s financial problems stem more from leadership lapses than lack of funding, explaining, “Investments alone aren’t enough; the situation worsens because the core issue is leadership, not just money.”
The allocation of $30 million to settle ECG’s debt has sparked debate over resource priorities. Boakye pointed out that these funds, potentially better allocated to essential areas like education and healthcare, are instead being diverted to resolve ECG’s financial woes. He also criticized the government for failing to treat the power sector as a self-sustaining business, emphasizing that political factors continue to hinder ECG’s operational efficiency.
