Finance Ministry approves $30M to Sunon Asogli to avert power crisis

The payment follows the shutdown of Sunon Asogli’s 560-megawatt power plant, a critical energy source, due to the Electricity Company of Ghana's (ECG) outstanding $259 million debt. This crisis raises fears of a return to “dumsor,” the term for Ghana’s extended power outages, which could have far-reaching economic implications.

The shutdown has exposed deeper issues within the power sector, including revenue collection problems, ECG’s financial mismanagement, and a lack of effective leadership, according to Ben Boakye, Executive Director of the Africa Center for Energy Policy.

He noted that ECG’s challenges are not solely financial but stem from ineffective leadership that fails to manage resources sustainably. Boakye argued that political pressures often interfere with ECG’s ability to operate as a business, hindering investment in the sector’s infrastructure and growth.

Elikplim Apertogbor, the spokesperson for Sunon Asogli, expressed frustration with the slow pace of negotiations and previous unfulfilled promises by the Finance Ministry, which strained relations with the IPP. While the $30 million payment aims to restore power production, Boakye criticized the government’s resource allocation priorities.

He emphasized that funding diverted to settle ECG’s debts could have been directed toward essential sectors like healthcare and education, benefiting the public in broader ways.

This crisis has brought renewed attention to the structural problems in Ghana’s energy sector. Boakye warned that the shutdown and disbursement would only provide temporary relief, with systemic issues likely to trigger similar crises in the future unless leadership and operational inefficiencies are addressed comprehensively.

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