The government is striving to finalize a debt restructuring agreement with Independent Power Producers (IPPs) by the end of March this year.Notably, the debt owed to power producers has been successfully reduced to approximately $700 million, marking a substantial milestone in the ongoing negotiations.Payments to IPPs have been in progress since 2023, following agreements with five Independent Power Producers in July of that year when the debt stood at $1.6 billion.“We are targeting the end of March to conclude the restructuring. We have also been able to reduce the debt to $700 million, which we believe is a significant step in the negotiations,” some individuals close to the negotiation process told JOY Business.The government had initiated payments after threats from some IPPs to disrupt power supply if outstanding debts were not settled.

As of February 28, 2024, term sheets have been exchanged with five independent power producers for further examination, with no reported objections to the proposed terms.Additional information suggests that the government is actively working to involve two more independent power producers in the negotiation process for debt restructuring.

The government has also secured agreements with the Electricity Company of Ghana to receive payments, and the overall restructuring is anticipated to conclude by the end of March 2024 upon the signing of the agreement.