The Minority in Parliament has challenged the government’s claim of successfully restructuring $1 billion in debt owed to Independent Power Producers (IPPs).
During a joint press conference on July 1, 2024, Finance Minister Dr. Mohammed Amin Adam, alongside officials from the Bank of Ghana (BoG) and the International Monetary Fund (IMF), announced the completion of negotiations with the IPPs. He asserted that this achievement would provide fiscal space to enhance the energy sector.
The months-long negotiations aimed at restructuring Power Purchase Agreements (PPAs) and addressing years of financial strain in the energy sector. Minister Amin Adam emphasized the critical role these agreements play in revitalizing Ghana’s energy infrastructure and fostering economic growth.
However, the Minority disputes this claim. John Jinapor, the ranking member of the Mines and Energy Committee, alleged that the government had misused the $1 billion borrowed in 2020 for the same purpose.
Jinapor has called for a national dialogue on Ghana’s economic situation, accusing the government of misleading the public and failing to offer practical solutions to the country’s economic issues.
“So unfortunately, once again, this so-called restructuring of IPP debt is nothing but a charade. In 2020, the government borrowed $3 billion in Eurobonds and promised to use $1 billion to restructure IPP liabilities. Once the government got the money, they misused and misapplied it.”
“Our latest check indicates that the money cannot be accounted for. Anytime the NPP claims they are restructuring or renegotiating any energy sector contract, it ends up being inflated and causing serious liabilities. It is time for the president and Dr. Bawumia to swallow their pride and call for a national dialogue on the state of Ghana’s economy.”
“This pretense of wishy-washy arguments and attempts to obfuscate the real facts will not help. It is time for Ghanaians to understand what lies ahead so that whichever government assumes office in 2025 will be realistic, honest with the people, and implement pragmatic measures to address our challenges.”