Ghana is on the brink of a significant power crisis as Karpowership, a major energy supplier, has issued a seven-day ultimatum to suspend operations due to unpaid debts. This development was confirmed by the Minister for Energy and Green Transition, John Jinapor.
In a recent interview, the Minister disclosed that the government inherited $1.7 billion in energy sector debt, with Karpowership alone owed $371 million. Additional outstanding amounts include $297 million owed to Asogli Power, $423 million to SEND Power, and $220 million to SNIT.
"Yesterday, I received a letter from Karpowership threatening to shut down their plant in seven days due to unpaid bills. We’ve been in talks, but they’ve made it clear—they will not budge," Jinapor stated.
The country’s total energy sector debt has now exceeded GH₵80 billion, placing considerable strain on an already vulnerable power system. The Minister warned that if the issue is not addressed urgently, it could result in a complete collapse of the sector.
In response to the looming crisis, the government has begun emergency negotiations with the Ministry of Finance. Partial payments have been made, including $30 million to Karpowership and other key suppliers such as WAPCo. However, the ongoing financial challenges have forced the government to exhaust international guarantees and redirect oil revenues to manage debts.
The World Bank’s $500 million energy guarantee has dwindled to just $50 million, while a $170 million guarantee with Litasco has also been nearly depleted. "They take the oil, sell it, and use the proceeds to pay down the debt," the Minister confirmed.
Looking ahead, Mr. Jinapor emphasized the urgent need for a new $700 million gas processing plant, describing it as essential to the long-term stability of the energy sector. “We need this plant like yesterday,” he stressed, noting that the project will be financed through domestic resources.
He also outlined plans to address the country’s energy infrastructure backlog within the next two years, acknowledging the scale of the challenge. “We’ve assessed the full picture and are working to fix it. Settling these debts requires using what we have—our oil,” he concluded.
Please don't forget to follow this page after reading and share the news to your friends and family to promote this platform.
Thank you
0 Comments