President John Dramani Mahama says Ghana has cleared its debts to Independent Power Producers (IPPs), assuring that the country currently has adequate electricity supply.
He said the energy sector had faced serious financial challenges when his government took office, with outstanding debts to IPPs estimated at $1.7 billion.
According to him, the situation had reached a point where some power producers were threatening to shut down their plants over unpaid debts.
During his engagement with the Ghanaian community in Moscow, President Mahama also disclosed that the country owed for gas supplied from the Jubilee Field and by ENI, adding that his government had taken steps to address the financial challenges in the sector.
He said the government had now cleared the outstanding IPP debts and introduced a payment arrangement to ensure that producers received payments on time.
“We have cleared the IPP debts. That is where currently, any energy they supply today, we’re paying them,” he said.
He added that the government had also made an initial payment towards the outstanding debts and was meeting subsequent payment obligations as they fell due.
President Mahama said the measures had restored confidence among the IPPs, who were now satisfied with the payment arrangements.
