Ghana is expected to save approximately $300 million following the successful renegotiation of debts owed to Independent Power Producers (IPPs), officials have announced.
The deal, which reduces the country’s outstanding obligations to IPPs from $1.5 billion to $1.2 billion, was confirmed by Ben Boakye, Executive Director of the Africa Centre for Energy Policy (ACEP). Mr Boakye served on the committee that led the debt restructuring process.
He said the move was part of a broader effort to relieve pressure on government finances while maintaining investor confidence in the energy sector.
“The IPPs have been very magnanimous. Despite having binding contracts, they’ve agreed to a haircut,” Mr Boakye said on the sidelines of the Future of Energy Conference in Accra, hosted by ACEP.
“We’re looking at nearly $300 million in immediate savings, and more than a billion dollars in reduced future payments,” he added.
Ghana’s ballooning energy sector debt has, in recent years, led to tensions between government and power producers, with some IPPs halting operations due to delayed payments.
These disruptions have occasionally impacted electricity supply and raised concerns about the country’s energy security.
Officials say the restructuring is aimed at placing the power sector on a more sustainable path, though full details of the agreements are yet to be disclosed by the government.
