ECG pays Sunon Asogli $30million out of $60million debt

Business & Finance ECG pays Sunon Asogli 30million out of 60million debt
DEC 8, 2023 LISTEN

Electricity Company of Ghana (ECG) has paid $30 million out of the $60 million debt owed the Sunon Asogli Power Limited.

Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama disclosed on Citi Prime News on Friday, December 8, that the payment was made to Sunon Asogli on Thursday, December 7.

The power producer shut down on Monday, December 4, citing the government's delay in honouring its financial obligations to power plants as the reason. However, it suspended its decision for a week following an assurance from the government for the clearance of the debt.

Mr. Mahama told Zoe Abu-Baidoo Addo that the ECG is committed to strengthening its relationship with all independent power producers.

He added that provisions have been made for a second tranche of $30 million to be paid to Sunon Asogli and structures laid to ensure payments are not delayed.

“Sunon Asogli has received $30 million from the government of Ghana and the conversations are far advanced for a second tranche of another $30 million to be paid to them and as it stands now, Sunon Asogli has always been an integral part of our growth.

“They are one of the first IPPs and they have always treated Ghana fairly when it comes to how they have structured their PPAs, they are very good partners that we intend to grow with so we have even come up with a new way to renegotiate our outstanding PPA to make it much more efficient and cheaper for the good people of Ghana.”