IPPs have agreed to take a haircut after 6 years of negotiation – Amin Adam

Finance Minister, Dr. Mohammed Amin Adam, has announced a finalized deal with Independent Power Producers (IPPs) to restructure arrears after six years of negotiations.

The agreement includes IPPs accepting a reduction in claims (haircut) and allows the government to spread payments over five years, providing significant fiscal relief.

The deal aims to address the severe debt issues in Ghana's energy sector, which accumulates about $1 billion annually. Despite efforts, challenges persist, including maintenance issues, fuel supply limitations, and exchange rate losses.

The Energy Ministry warns of potential power outages due to these ongoing problems, highlighting the sector's instability.