Ghana's Sunon Asogli delays power plant shutdown after interim debt deal

SUNONWEALTH ELECTRIC MACHINE INDUSTRY

05/12/2023 09:33

By Maxwell Akalaare Adombila
       ACCRA, Dec 5 (Reuters) - Ghanaian independent power
producer Sunon Asogli said it has delayed for a week a
threatened shutdown at its 560 MW gas-fired power plant after
reaching an interim payment agreement for $60 million of its
debt with the government.
    The company, which owns around 10% of the West African
nation's installed generating capacity, said on Monday it had
suspended operations indefinitely, citing unpaid government
debt and what it called unproductive engagements to find a
solution.
    In a letter dated Dec 4, Sunon Asogli's chairman Qun Yang
said the shutdown would be delayed for a week following
assurances from Ghana's ministers of finance and state that
overdue invoices would be paid.
    In the letter, seen by Reuters on Tuesday, Yang asked the
national electricity supplier to confirm it would be paid in two
$30 million tranches, one this week and the second next week.
    The state-run Electricity Company of Ghana (ECG) did not
immediately respond to a request for comment.
    The government has been seeking a debt deal with independent
power producers (IPP) as it grapples with its worst economic
crisis in a generation, characterised by double-digit inflation
and ballooning public debt.
    In July, the IPPs reached an interim deal with the ECG over
arrears owed to them. However, they warned that if the debt
issue remained unresolved they would shut down without any
further notice.
    Ghana has 5,454 MW of installed capacity, of which 4,483MW
is available, its energy regulator said in April.

 (Reporting by Maxwell Akalaare Adombila; Editing by Hereward
Holland, Kirsten Donovan)
 ((hereward.holland@thomsonreuters.com; +254 20 499 1232;
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