The Minister for Energy and Green Transition, John Jinapor, has revealed that the government is engaging Independent Power Producers (IPPs) to renegotiate contract terms as part of efforts to stabilise Ghana’s energy sector.
Speaking at a high-level forum on Ghana’s energy landscape, organised by the Africa Centre for Energy Policy (ACEP) and the Open Society Foundations on Friday, July 18, Mr. Jinapor said the negotiations aim to strike a “win-win” deal for both the state and private sector players.
The renegotiation process is being led by ACEP’s Executive Director, Benjamin Boakye.
The Minister admitted that the early months of his tenure were particularly challenging, citing threats from IPPs to shut down operations over unpaid arrears.
“When I asked how much we owe the IPPs, they said $1.7 billion. Then I asked about the entire power generation sector, and they said $3 billion. The energy sector alone needs GH¢81 million to clear the pipeline,” Mr. Jinapor disclosed.
He described the initial phase as “very tough,” noting that even doubling electricity tariffs would not have been enough to resolve the financial challenges facing the sector.
Despite the difficulties, Mr. Jinapor expressed optimism about the reforms and ongoing negotiations, stating that the efforts are already yielding positive results.
“Looking at where we were and where we are today, we have made significant progress. If we continue on this trajectory, I am confident we can turn the corner and achieve long-term sustainability,” he stated.
The Minister stressed the importance of anchoring Ghana’s economic transformation on a stable energy sector, which he described as critical to growth and development.
“We are renegotiating with some of the IPPs, and under Ben Boakye’s leadership, we believe we can secure favourable terms that ensure the sector’s viability while meeting Ghana’s energy needs,” he added.
Source: AdomOnline
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