The Electricity Company of Ghana (ECG) has expressed confidence in settling debts owed to Independent Power Producers (IPPs) by the end of the week.
The ECG and IPPs last week reached a unique payment agreement promoting the latter to suspend its plans to cut power supply to the national grid on July 1.
The power producers had demanded a 30 per cent interim payment of the arrears, but after their June 30 deadline expired, they agreed to continue powering their plants after engagements with ECG.
Managing Director of ECG, Samuel Dubik Mahama told the media that the company is making headway with its arrangements and hopes to finalize it soon.
“We have a few more things to do together as partners, so that certain documents will be signed, and some conclusions reached so that the necessary disbursements can be made by end of week for everything regarding cash can happen”, he said.
The IPPs which control about 50 percent of the country’s generation mix had highlighted that this debt has hindered their access to working capital, preventing them from financing crucial inputs such as chemicals for water treatment in thermal generators and other supplies, many of which are priced in foreign currency, primarily the US dollar.
But the Chairman of the IPPs stated that “we are pleased to have reached an interim understanding with ECG, which enables us to continue our operations for the benefit of the good people of Ghana. We recognize the importance of our operations to the nation, and all the IPPs jointly remain committed to Ghana in delivering reliable power to the country. We also appreciate the support and collaboration we have received from the general public and all well-meaning Ghanaians throughout this process.”