The government’s claim that it has achieved an agreement with the IPPs to reduce the debt owing to the power generators operating in the country has been characterized as misleading by Independent Power Generators Ghana.

The agreement calls for the IPPs to accept a reduction in their claims (haircut), allowing the government to spread payment over five years, according to Finance Minister Dr. Mohammed Amin Adam.

Chief Executive Officer of Independent Power Generators, Ghana, Dr. Elikplim Kwabla Apetorgbor, stated in a statement copied to Citi Business News that no terms have been agreed upon since some IPPs’ last meeting with the government of Ghana’s negotiating team in April 2024.

“It has come to our attention that the Minister of Finance has made public statements indicating that a deal has been reached with Independent Power Producers (IPPs) regarding debt restructuring. We must categorically state that this assertion is misleading and inaccurate”.

“The last engagement with some of the IPPs and the Government of Ghana’s negotiating team occurred in April [2024] and since then, no agreement on any terms has been reached. The posture and generalisation that the government has secured a debt restructuring agreement with the IPPs are misleading and amount to public deception”, he added.

“We urge the Minister of Finance to refrain from making such inaccurate statements and to engage in transparent and honest communications”, he stressed.

Nevertheless, he pointed out that the IPPs are still dedicated to having a positive conversation and resolving the current issues in a way that benefits all sides.

According to sources cited by Citi Business News, only two IPPs—CenPower and Amandi—have agreed to the government’s plan to restructure their debt.

The remainder, Karpowership, Twin City Energy, Sunon Asogli, Cenit Energy, and AKSA, declined the Ghanaian government’s proposal for a haircut.