Karpowership Ghana has initiated negotiations with the government over an outstanding debt of $379 million.
The company says the discussions have become urgent due to the impact of unpaid invoices on its operations. It has been engaging the Ministry of Energy and Green Transition to resolve the financial obligations.
Karpowership has warned that it may suspend electricity supply if the debt remains unpaid. However, the Ministry of Energy has assured the public that the situation will not disrupt power supply in the country.
“We have engaged the Ministry of Energy over the accrued debt, and negotiations are ongoing,” Sandra Amarquaye, Communication Manager for Karpowership Ghana, told Citi Business News.
She reaffirmed the company’s commitment to its partnership with Ghana, emphasizing the importance of resolving the issue to maintain a stable and mutually beneficial relationship.
The discussions come at a time when concerns about Ghana’s energy sector and its financial sustainability are growing, with mounting debts threatening the stability of power agreements.
Industry experts warn that prolonged delays in settling these financial commitments could impact power generation and possibly lead to supply disruptions.
“We had a meeting with the Ministry of Energy and Green Transition. We brought it to their attention, and we are currently in negotiations with the government for a sustainable solution over the debt that accrued over the period,” Amarquaye added.
Citi Business News has learned that the sector minister, John Jinapor, has plans to clear the debt.
“And we as a ministry will do everything within our power to ensure that we do just that. Inasmuch as it is a burden, but regardless of how much it is, we need to find solutions. And that is exactly what the ministry is determined to do,” said Isaac Agyei Kwakye, Public Relations Officer for the Ministry.
-Citinewsroom
