- The operators of the Karpowership plant in Aboadze, Ghana’s Western Region, have sternly warned the government, threatening to shut down operations if outstanding debts exceeding $370 million are not settled.
- Karpowership, which supplies approximately 450 megawatts of electricity to Ghana’s national grid, emphasised that the mounting debt owed by the Electricity Company of Ghana
The operators of the Karpowership plant in Aboadze, Ghana’s Western Region, have sternly warned the government, threatening to shut down operations if outstanding debts exceeding $370 million are not settled promptly.
The caution came after a meeting between the company’s representatives and the Minister of Energy and Green Transitions, John Abdulai Jinapor, at the ministry’s offices in Accra. Karpowership, which supplies approximately 450 megawatts of electricity to Ghana‘s national grid, emphasised that the mounting debt owed by the Electricity Company of Ghana (ECG) has significantly hampered its operations.
According to the company, if payments are not made soon, it will have no choice but to cease power generation. While the company acknowledged the potentially devastating impact of a power plant shutdown on the livelihoods and well-being of Ghanaians, it stressed that the financial burden had become unsustainable to its operations.
During the meeting, Karpowership’s Chief Commercial Officer (CCO), Zeynep Harezi Yilmaz, provided an overview of payments received to date. He revealed that as of December 2024, ECG had paid $39.60 million, while the Ministry of Finance disbursed $185.28 million. Despite these payments, the company is still owed over $370 million.
Yilmaz urged the government to take immediate action to clear the outstanding invoices and compel ECG to adhere to the Power Purchase Agreement (PPA) terms.
“Should ECG, and by extension the government, fail to honour the terms of the PPA and make the necessary payments, we will be left with no choice but to shut down our plant,” he cautioned.
Minister of Energy John Jinapor reaffirmed the government’s recognition of Karpowership’s crucial role in the nation’s energy sector. He assured the company of the government’s commitment to resolving the issue promptly.
“We will prioritise making the required payments to ensure the continuous operation of the power generation company and engage in open and transparent communication with Karpowership,” John Jinapor stated.
He added that a payment plan would be established immediately to address the arrears and prevent the impending shutdown.