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Sunon Asogli suspends planned shutdown for a week as govt commits $60m payment

Sunon Asogli Power (Ghana) Limited has suspended the shutdown of its plant for one week.

Sunon Asogli Plant

This U-turn comes from an intervention from the Ministry of Finance, the company said.

This according to the company is “given the intervention and assurance of the Minister of Finance and Minister of State.”

In a statement issued on Monday evening, it added, “Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche is $30 million to be paid this week and the second tranche in the week of 11th December 2023.”

The independent power producer earlier announced the indefinite shutdown of its 560MW plant, thus suspending its operations with immediate effect.

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The company said the decision is because of the government’s delay in honoring its financial obligations to the management of the power plant.

The letter reads: "Sunon Asogli Power (Ghana) Limited Company announces with regret an indefinite suspension of operations at the Sunon Asogli Power Plant, effective Monday, December 4, 2023, at 6 p.m. This difficult decision became necessary due to avoidable delays in payment from the GoG/Electricity Company of Ghana for power supplied, as well as the unproductive engagements to find an amicable solution" to the indebtedness.

The company further complained that the accumulating unpaid bills have significantly impacted its operational capacity, making it unsustainable to continue without addressing these financial challenges.

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