Ghana has averted a potential power disruption after Karpowership suspended plans to shut down its operations in May, following successful negotiations with government over a $400 million debt.
The agreement secures the continued supply of about 450 megawatts of electricity to the national grid, easing immediate concerns over power stability.
Energy and Green Transition Minister, John Abdulai Jinapor has confirmed that both parties have agreed on a structured repayment roadmap, leading to the withdrawal of an earlier shutdown notice.
He said, government is managing Ghana’s broader energy sector debt crisis, which continues to weigh heavily on the country’s fiscal position and power supply chain.
According to the Minister, the debt forms part of legacy obligations that have complicated ongoing reforms in the sector.
He noted that government engagement with Karpowership reflects a broader strategy of active liability management and stakeholder negotiations to maintain supply while addressing arrears.
The near shutdown threat had emerged after the company signalled its intention to halt operations due to non-payment.
Ghana’s energy sector is currently burdened with an estimated $3.1 billion in outstanding debt, including about $1.7 billion owed to Independent Power Producers, alongside roughly GH¢2 billion in monthly revenue shortfalls linked to under-recoveries by the Electricity Company of Ghana.
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