Accra, Aug. 1 – The Minister of Finance, Mr. Ken Ofori-Atta, announced during the Mid-year budget review in Parliament that the government is actively engaging with Independent Power Producers (IPPs) to seek debt relief for the energy sector. Addressing the challenge of IPP power payments, the government is collaborating with the IPPs to restructure accrued outstanding balances and eliminate arrears in the sector.
Mr. Ofori-Atta acknowledged that excess capacity remains a critical issue for the economy and shared that the government had renegotiated the Gas Sales Agreement between VRA and N-Gas to reduce excess capacity commitments. Additionally, in a push for cleaner and alternative energy sources, Ghana is taking steps to develop its first nuclear power plant. The government has shortlisted vendor companies and countries for this endeavor and engaged companies to identify economically resilient nuclear power technology.
To alleviate the financial burden on the energy sector, Mr. Ofori-Atta called for collective efforts to assist the Electricity Company of Ghana in its revenue collection exercise. He highlighted the positive impact of the Cash Waterfall Mechanism (CWM) and Natural Gas clearing in ensuring equitable distribution of revenues in the energy sector. Furthermore, reforms are underway to enforce mandatory compliance in providing cash flow to the IPPs through the CWM.
As the government strives to address energy sector challenges and promote sustainable energy solutions, the ongoing discussions with IPPs are a crucial step towards achieving debt relief and stability in the sector.
 for debt relief in the energy sector and announces plans for Ghana's first nuclear power plant development. As the nation advances towards cleaner energy solutions, collective efforts are sought to support the Electricity Company of Ghana and ensure equitable distribution of revenues in the energy sector through the Cash Waterfall Mechanism (CWM).){kind=link}