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

According to Samuel Dubik Mahama, the Managing Director of ECG, the payment was completed on Thursday, December 7, following a meeting between the two bodies.

“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," he said.

This payment is part of the effort to address the financial obligations to power producers, with the remaining $30 million scheduled to be paid as a second tranche.

The power producer had halted its operations on Monday, December 4, citing the government’s delay in fulfilling its financial commitments to power plants as the primary reason. However, it decided to temporarily suspend its shutdown for a week after receiving assurance from the government regarding the settlement of the outstanding debt.

The shutdown was initiated due to concerns raised by Sunon Asogli Power about the substantial impact of accumulating unpaid bills on its operational capacity, deeming it unsustainable to continue without addressing the financial challenges.

Sunon Asogli only suspended its decision following the Minister of Finance and Minister of State’s assurance and wrote in an acknowledgement note that “Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche $30 million to be paid this week and the second tranche in the week of 11th December 2023.”