• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Finance Minister Clarifies Sunon Asogli Shutdown Amid $60 Million Payment Dispute

10 months ago
in Economy, Energy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
690
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

RelatedPosts

African Airlines Record 9.4% Growth In Air Cargo Demand In July 2025 – IATA

South African President Ramaphosa Launches G20 Taskforce to Tackle Global Wealth Inequality Amid US Absence

Burkina Faso’s Nationalization Rattles West Africa’s Gold Sector

Finance Minister Clarifies Sunon Asogli Shutdown Amid $60 Million Payment Dispute

Ghana’s Finance Minister, Dr. Mohammed Amin Adam, addressed the recent shutdown of the Sunon Asogli Power Plant during a press briefing following the conclusion of the IMF/World Bank Annual Meetings.

The shutdown of the power plant, he explained, resulted from a payment dispute between the Ministry of Finance and Sunon Asogli after the government declined to make an additional $30 million payment, beyond an agreed $30 million part-payment towards its outstanding debt.

Dr. Amin Adam speaking at the press briefing detailed the negotiations that went on between the Ministry, the Electricity Company of Ghana (ECG) and Sunon Asogli, noting that an initial agreement had been reached to settle the debt with a $30 million payment, contingent upon Sunon Asogli signing a formal settlement agreement.

However, Asogli subsequently demanded an additional $30 million, bringing the total to $60 million, and refused to sign until payment was made, ultimately leading to the plant’s shutdown.

In his remarks, Dr. Amin Adam criticized Sunon Asogli’s approach, describing it as a negotiation tactic ahead of Ghana’s election period, stating that Asogli acted in “bad faith” by leveraging the shutdown as pressure for payment from the Government.

Despite the plant’s closure, the Minister assured Ghanaians that the country’s electricity supply remains unaffected due to surplus generation capacity.

“In spite of the shutdown, we continue to have surplus generation capacity,” he stated, emphasizing that other power plants continue to operate and meet the nation’s energy demands.

He, however, noted that talks with Sunon Asogli has resumed.

The Minister therefore expressed optimism for a resolution, stating that steps are being taken to normalize the relationship with Sunon Asogli through the finalized settlement agreement.

ECG’s $259 Million Debt Forces Sunon Asogli to Cease Operations

Sunon Asogli Power Ltd, a key player in Ghana’s energy sector, has halted operations due to a $259 million debt owed by the state-owned Electricity Company of Ghana (ECG), the company announced on October 16.

The power producer shut down its facilities on October 8 after prolonged efforts to resolve the debt proved futile.

In a strongly worded statement, Sunon Asogli said it had “no alternative” but to cease operations, citing ECG’s persistent failure to meet payment obligations.

The company noted that it had not invoiced for idle capacity charges—a practice followed by other independent power producers—demonstrating what it described as a “high level of consideration” towards ECG and the government.

However, despite these concessions, ECG’s debt to Sunon Asogli grew by 23% in the first nine months of 2024. Only 22.6% of invoices for that period have been settled, mostly through the country’s Cash Waterfall Mechanism.

The decision by Sunon Asogli to halt operations underscores the growing strain on the country’s electricity grid amid concerns over ECG’s liquidity and broader financial health.

According to the African Centre for Energy Policy (ACEP), data from the Public Utilities Regulatory Commission (PURC) shows that ECG experienced under-recoveries of GHS 13.6 billion between August 2023 and July 2024, with an alarming revenue collection rate of just 43% over this period.

Furthermore, ACEP cites the Energy Sector Recovery Program, which estimates that power sector shortfalls between 2019 and 2023 amounted to approximately $8.25 billion, a figure ACEP described as an unsustainable drain on public resources.

Currently, the total energy sector debt stands at some $1.74bn with over $1.2bn owed in legacy IPP debts; $450m owed for gas payments to operators of the OCTP oil field, $20m debt to WAPCo and revenue under-recoveries of some $67m by the ECG.

Tags: 60 Million Payment DisputeFinance MinisterFinance Minister Clarifies Sunon Asogli Shutdown Amid $60 Million Payment Dispute

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

Experts Talk BoG’s New Currency Controls & Crackdown on NPLs on NorvanReports’ X Space Discussions Tonight

Piastri Claims Pole Position in Thrilling Dutch Grand Prix Qualifying

US Open: Osaka, Alcaraz, Djokovic Shine as Gauff Joins Them in Last 16

Morocco Beat Madagascar to Secure Historic Third CHAN Title

$41bn Reserves vs Empty Pockets: When Will Relief Come For Nigerians?

Africa Emerges as Manufacturing Haven Amid US–India Trade Tensions

Trending

Aviation

African Airlines Record 9.4% Growth In Air Cargo Demand In July 2025 – IATA

August 31, 2025

African Airlines Record 9.4% Growth In Air Cargo Demand In July 2025 – IATA African airlines saw...

South African President Ramaphosa Launches G20 Taskforce to Tackle Global Wealth Inequality Amid US Absence

August 31, 2025

Burkina Faso’s Nationalization Rattles West Africa’s Gold Sector

August 31, 2025

Experts Talk BoG’s New Currency Controls & Crackdown on NPLs on NorvanReports’ X Space Discussions Tonight

August 31, 2025

Piastri Claims Pole Position in Thrilling Dutch Grand Prix Qualifying

August 31, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.