IPPs demand $1.4bn debt from government; call for inclusion in mid-year budget
- The Chamber of Independent Power Producers and Bulk Consumers says the mid-year budget to be read should include plans to settle debts owed to it
- The chamber revealed that the government owes its debts to the tune of $1.4 billion
- It revealed that the situation may force it to shut down plants soon if measures are not taken to settle the debt
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The Chamber of Independent Power Producers and Bulk Consumers (CIPDiB) has called for the inclusion of a $1.4 billion debt owed to them by the government in the mid-year budget review.
Their call comes ahead of the presentation of the budget to Parliament which is scheduled for Thursday, July 23, 2020.
The CIPDiB noted that the continuous piling up of debt has compelled them to secure expensive loans to sustain their businesses.
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The Chief Executive Officer (CEO) of the chamber, Elikplim Kwabla Apetorgbor, said the power producers may be forced to shut down their plants if the situation continues as it is.
Per a report by citibusinessnews.com, he explained that 1.5% of the debt represents an unsettled legacy debt dating from 2016.
He added that 78% of the debt represents cumulative invoices from the time when the Power Distribution Services took over power distribution in Ghana to date.
Source: UGC
The remaining 20.5%, he added, represents default claims.
According to him, the budget should include measures designed to address the shortfalls in revenue streams of the Electricity Corporation of Ghana (ECG).
YEN.com.gh earlier reported that the Minister of Finance, Ken Ofori-Atta, will present the mid-year budget review to Parliament.
The action is in line with the requirement of Section 28 of the Public Financial Management Act, 2016 (Act 921).
It has been gathered that the minister will also use the opportunity to request supplementary estimates.
Projections for the 2020 financial year have been reportedly derailed following the outbreak of the coronavirus.
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Source: YEN.com.gh
