Sunon Asogli Power (Ghana) Limited has announced the resumption of operations effective Monday, November 25, 2024.
This decision follows the intervention of the Minister for Finance, Mohammed Amin Adam, and the Minister for Energy, Herbert Krapa, who facilitated the release of emergency funding to address the company’s critical financial needs.
In a statement, Sunon Asogli expressed optimism that the Electricity Company of Ghana (ECG) will adhere to the spirit of the contract and diligently honour its financial obligations under the Power Purchase Agreement (PPA).
The company also expressed regret for the impact of its shutdown.
“We have returned to operations today, Monday, November 25, 2024 at 3PM.”
In an earlier statement released on October 16, 2024, Sunon Asogli Power (Ghana) Limited announced the shutdown of its 560MW power plant due to the Electricity Company of Ghana’s (ECG) failure to meet overdue payment obligations.
The shutdown of its 560MW power plant was due to an outstanding debt of $259 million owed by the Electricity Company of Ghana.
This left Sunon Asogli unable to continue funding its operations.
The company disclosed that ECG owes a net receivable of $259 million (excluding fuel) as of the end of September 2024.
As of November 4, Sunon Asogli Power Ghana Limited reported that it had not received any part of the $30 million directed by the Ministry of Finance for release by the Controller and Accountant General’s Department (CAGD), despite government assurances.
Read below the full statement by Sunon Asogli
Sunon Asogli 560MW Power Plant Returns to Operation
1. We wish to express our sincere appreciation to the Minister for Finance, Hon. Mohammed Amin Adam, and the Minister for Energy, Hon. Herbert Krapa for their intervention, in releasing an emergency funding to address our critical financial need. We have returned to operations today, Monday, November 25, 2024 at 3 PM.
2. We have submitted our final version of the Restructuring Terms Sheet to the Ministry of Finance and Electricity Company of Ghana (ECG) in August, for finalisation and signing soon. We are confident that a win-win solution that will ensure the stability and reliability of Ghana’s energy sector will be achieved.
3. We hope the Electricity Company of Ghana (ECG) can adhere to the spirit of the contract and diligently honor their financial obligations in the PPA.
4. We would like to commend H.E. the Vice President, for his intervention in ensuring the payment to us for our return to operation. 5. We deeply regret the impact of our shutdown.
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