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Government secures $66m discount on Cenpower legacy debt
•2 min read•2 sources
The Government of Ghana has negotiated a $66 million discount on approximately $400 million in legacy debt owed to Cenpower Generation Limited. This arrangement, finalized through an amended Power Purchase Agreement (PPA), was announced during the 10th-anniversary celebration of the Kpone Independent Power Plant. The restructuring is part of a broader government initiative to settle outstanding debts to Independent Power Producers and stabilize the nation's energy sector.
Under the terms of the new agreement, the government secured a 10-year extension of Cenpower’s contract alongside a reduction in tariffs. Samuel Nana Brew-Butler, Chairman of Cenpower’s Board, stated that the company was willing to grant the $66 million discount as a sacrifice for the benefit of the nation. The negotiation is expected to ease the financial pressure on the state while ensuring the continued operation of a plant that currently serves approximately one million Ghanaian households.
Vice President Jane Naana Opoku-Agyemang commended Cenpower for its significant contributions to national energy security and economic development. Speaking at the anniversary event, she praised the company's commitment to community development, specifically highlighting its environmental initiatives and support for education. The Vice President emphasized that maintaining a robust and reliable energy system remains a priority for the administration to drive industrial growth and economic sustainability.
The government’s efforts to address these financial challenges aim to provide more affordable electricity to underserved communities. By renegotiating legacy agreements and fostering stronger partnerships with private energy providers, the administration seeks to create a more sustainable fiscal framework for the power sector. Cenpower’s decade of operations has been marked by international recognition for its performance, and this new agreement secures its role in Ghana's energy future for another decade.
