The Minister for Energy and Green Transition, John Jinapor, has revealed that the government is actively engaging Independent Power Producers (IPPs) to renegotiate existing contracts in a bid to ease financial pressure on the country’s energy sector.
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According to the Minister, the goal is to reach mutually beneficial terms that balance national interests with those of private power providers.
Speaking at a high-level forum organized by the Africa Centre for Energy Policy (ACEP) and the Open Society Foundations, Mr. Jinapor disclosed that the renegotiation process is being led by ACEP’s Executive Director, Benjamin Boakye.
“We are renegotiating with some of the IPPs, and we believe that under Ben’s leadership, we can secure terms that will be favourable to all parties,” Jinapor stated.
Sector’s Financial Burden
Highlighting the sector’s financial woes, the minister revealed that Ghana currently owes $1.7 billion to IPPs, while total debts across the power generation chain amount to $3 billion. He also cited an additional GH¢81 million needed to clear obligations within the energy pipeline.
“Initially, I was overwhelmed. Even doubling the electricity tariff wouldn’t solve the problem entirely,” he said.
Despite the difficult start to his tenure, Mr. Jinapor expressed confidence in ongoing reforms, noting that collaborative efforts have already led to measurable progress in stabilising the sector.
Vision for Economic Transformation
Mr. Jinapor emphasized that a reliable and sustainable energy sector is crucial for Ghana’s broader economic transformation. He said long-term energy reforms must support economic growth and national development.
“We want to anchor the economy on sound energy systems that deliver long-term gains. That’s what transformation means,” he noted.
