Patrick Nyarko, a private consultant in energy and infrastructure finance is urging government to interrogate invoices submitted by Independent Power Producers (IPP) before processing payment.
The consultant suspects government could be over-invoiced by some IPPs, given the ‘ever-ballooning’ debt.
The Minister for Energy and Green Transition, John Jinapor recently confirmed that government owes IPPs to the tune of $1.7 billion, out of which a sum of $400 million is owed Karpower Ghana. Already, Karpower has threatened to discontinue service by 18 May 2025, should government fail to honour its payment obligations.
This disclosure has sparked concerns over a potential energy crisis. Referencing government’s inability in honouring payment obligations to IPP deals and the accumulative effect on our energy sector, Patrick Nyarko suggests it is about time government interrogates invoices submitted by IPPs.
He thinks a probe into these accumulated debts is needed, fearing that some persons might be milking the state.
“…how much we owe, must be of interest to every Ghanaian and interrogated. How are we able to subject to strict scrutiny, the invoices submitted by these IPPs? There is a possibility some unscrupulous persons are working against the state by over-invoicing us.”
“Though the Minister is not responsible for validating these invoices, he can take a cursory look at these invoices submitted by the IPPs… whoever is responsible for interrogating or reconciling these invoices needs to be extra vigilant. We’ve been paying these debts for years and are unable to clear them, why? The government can renegotiate these debts with the IPPs,” he told Connect FM in Takoradi on May 16.
The consultant argued that government’s failure in paying Karpower could result in a spiral cut in power supply by other IPPs in the country. That he said, could end Ghana in ‘dumsor.’
“Other IPPs might withdraw their services should government fail to honour its obligation towards Karpower. Asogli and others are likely to follow suit in the coming months if government fails to pay or renegotiate terms with Karpower. We will be plunged into an energy crisis (dumsor), should that happen,” he said.
Meanwhile, a total of 450,000 barrels of light cycle oil, according to the Head of Communication for the Ministry of Energy and Green Transition, Richmond Rockson, has been secured to power up power plants in the country. More stock is expected to be added in due time. The assurances are that there will not be any prolonged power outages due to fuel shortage.
