Ghana Power Producers Call Off Shutdown After Interim Deal

Independent power producers in Ghana have announced the suspension of a planned shutdown which was due to start on July 1st.

In an earlier statement late on Friday, the group said it had reached a deal with state-run Electricity Company of Ghana over arrears owed to them.

According to the statement, under the new agreement, the power producers have received an interim payment offer with the understanding the government and Electricity Company of Ghana will use the grace period to work towards a permanent resolution to the debt issue.

In May, the group of independent power producers rejected a government proposal to restructure $1.58 billion in arrears owed to them by the state as part of the West African nation’s efforts to implement a $3 billion loan deal from the International Monetary Fund (IMF).

The loan from the International Monetary Fund was meant to help address Ghana’s worst economic crisis in a generation.