Govt In Crunch Meeting With IPPs


THE GOVERNMENT has appealed to the Independent Power Producers (IPPs) not to carry out their threats of plunging the country into darkness.

Kojo Oppong Nkrumah, the Minister of Information, disclosed that government made the appeal during a crunch meeting with the Independent Power Producers.

“We had a crunch meeting with the Independent Power Producers during a cabinet meeting on Thursday. The important meeting even travelled deep into the night.

“During the meeting, we appealed to the Independent Power Producers not to carry out their threats of cutting power supply and plunging the state into darkness.

“The President and other top members of the government, including officials of the energy sector, were present at the meeting,” Oppong Nkrumah disclosed on Hello FM.


Huge Debt

According to him, it was true that the country owed the Independent Power Producers, hence their threats of cutting power supply if part of the debt was not settled.


Cause of Debt

The Information Minister explained that the huge debt were caused by ‘bad’ take-or-pay contracts that the National Democratic Congress (NDC) government signed years ago.

“We are in this problem because of the Take-or-Pay contracts that the previous government signed on behalf of the country when they were in power,” he openly lamented.


Details of Meeting

The Independent Power Producers, he said, during the meeting with government, demanded that one-third of the debt should be settled, else they would cut power supply.

According to Oppong Nkrumah, government explained to the IPPs that the country was not in the position to make that huge financial commitment now.

“We made them aware that the country is not in the position to pay that huge debt now, so they should temper justice with mercy and relax their demands,” he disclosed.

Oppong Nkrumah said talks between government and the Independent Power Producers were still ongoing, expressing hope that the two parties would reach a deal soon.

Touching on the take-or-pay deals signed by the NDC administration, he stated that the bad contracts have become an albatross hanging on the neck of the country now.

“Even the IMF said aside the COVID-19 and the Russia-Ukraine war, the Take-or-Pay deals in the energy sector, signed by the previous government, is adversely affecting the country,” he said.


FROM I.F. Joe Awuah Jnr., Kumasi