Capture US$1.4bn debt owed us in mid-year budget – CIPDiB to Gov’t

Elikplim Kwablah Apetorgbor, CEO of CIPDiB

The Chamber of Independent Power Producers and Bulk Consumers (CIPDIB) has made a demand on the government of Ghana to factor the payment of the about-US$1.4billion debt owed them in the 2020 mid-year budget.

According to CIPDiB, the 2020 mid-year budget must address how government intends to pay all debts owed the Independent Power Producers (IPPs), as it is adversely affecting their ability to generate cheaper power.

Chief Executive Officer (CEO) of CIPDiB, Elikplim Kwablah Apetorgbor, in a press statement indicated that as at June 30, 2020 government’s cumulative indebtedness to the IPPs was about US$1.4 billion and continues to accumulate, compelling the IPPs to contract costly loans for sustain their generation.

“This situation is grim and there is a real danger of IPPs shutting their plants if the situation is not resolved in the immediate term. The budget should include measures to ensure that the shortfalls in ECG’s revenues are addressed as and when they occur, to ensure that IPPs and others who supply products or services to ECG are paid on time,” he emphasised.

Mr. Apetorgbor further expressed that the IPPs cannot be responsible for government’s subsidies and other obligations, as they are private entities which survive on profitability.

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