The government of Ghana is facing an ultimatum from the Independent Power Producers, Distributors and Bulk Consumers (IPPs) to pay off its debt by the end of June 2023 or risk losing power supply to the national grid.
The IPPs account for more than 65% of the thermal generation capacity in the country, which means a huge power shortfall could occur if they cut off their supply.
According to Joy Business, a letter will be sent today May 29, 2023 to the Finance Minister, Ken Ofori-Atta, to notify him of the impending action. Joy Business also reported that as of April 2023, the government owed the IPPs $1.630 billion.
This comes at a time when Ghana is trying to reduce its external debt interest payments by $10.5 billion in three years as part of a $3 billion loan agreement with the International Monetary Fund (IMF).