Karpowership Ghana has begun negotiations with the government over the accumulated debt of $379m.
The company says, the urgent discussions on the arrears has become necessary because the non-payment of invoices is impacting its operations.
It confirms that it has been engaging the Ministry of Energy and Green Transition regarding outstanding financial obligations.
Karpowership has threatened to suspend electricity supply unless the government settles the debt but the Ministry of Energy assures that the development will not affect power supply in the country.
Sandra Amarquaye, Communication Manager for Karpowership Ghana tells Citi Business News that “we have engaged the Ministry of Energy over the accrued debt and negotiations are ongoing.”
She reaffirmed Karpowership’s commitment to its collaboration with the country, stressing the need to address the current challenges in order to maintain a stable and beneficial partnership for both parties.
Her statement comes at a time when the sustainability of Ghana’s energy sector and the financial obligations tied to power supply agreements have raised growing concerns.
The situation adds to concerns about Ghana’s energy sector, which has been grappling with mounting debts.
Industry analysts warn that delays in addressing these financial commitments could affect power generation, potentially leading to supply disruptions.
“We had a meeting with the Ministry of Energy and Green Transitions. We brought it to their attention and we are currently in negotiations with the government for a sustainable solution over the debt that accrued over the period”.
Citi Business News understands that the sector Minister, John Jinapor, has plans to clear the debt.
“And we as a ministry will do everything within our power to ensure that we do just that. Inasmuch as it is a burden, but regardless of how much it is, we need to find solutions. And that is exactly what the ministry is determined to do”, says Public Relations Officer for the Ministry, Isaac Agyei Kwakye.
