Sunon Asogli Power (Ghana) Limited has resumed operations at its 560MW power plant following an intervention by Finance Minister Mohammed Amin Adams and Energy Minister Herbert Krapa. The intervention included the release of emergency funding to address the financial challenges that led to the plant’s shutdown in October 2024.
Background on Shutdown and Debt Issues:
The shutdown occurred after the Electricity Company of Ghana (ECG) failed to settle overdue payments to Sunon Asogli. As of September 2024, ECG owed the company $259 million, excluding fuel costs. Despite refraining from invoicing for idle capacity, Sunon Asogli reported a 23% growth in debt between January and September 2024, with only 22.6% of invoices being settled through the Cash Waterfall Mechanism.
Restructuring Efforts:
To address these financial issues, Sunon Asogli submitted the final version of a Restructuring Terms Sheet to both the Ministry of Finance and ECG in August 2024. The company is hopeful that a win-win solution will be reached to ensure the long-term stability and reliability of Ghana’s energy sector.
Government Support and Future Prospects:
The government’s swift intervention, particularly by Vice President Dr. Mahamudu Bawumia, has been crucial in facilitating the payment of debts owed by ECG. Sunon Asogli expressed appreciation for this support, which has enabled the resumption of operations. This intervention is expected to help stabilize power supply in the country and address ongoing financial sustainability challenges within Ghana’s energy sector.
