The Government of Ghana has secured a $66 million Cenpower debt discount on arrears that at one point stood at about $400 million, under a revised power agreement with the Independent Power Producer.
The amended and restated Power Purchase Agreement also gives Cenpower Generation Limited a 10-year extension to its existing contract while reducing the tariff charged by the company.
About $59 million was paid to Cenpower in 2025 as part of the government’s programme to settle legacy debts owed to Independent Power Producers.
The revised agreement was announced at a ceremony marking 10 years of operations of Cenpower’s 375-megawatt Kpone Thermal Power Plant.
Cenpower accepts $66m reduction
Cenpower Board Chairman Samuel Nana Brew-Butler said the company accepted the discount as part of a compromise to help address the country’s power sector obligations.
He said the arrears had climbed to around $400 million at one stage, but the company agreed to give up $66 million of the amount owed.
“If you remember, I said at one stage, what was outstanding was about $400 million, but it’s our country, so that sacrifice had to be made,” Mr Brew-Butler said.
The concession comes with changes to the commercial relationship between Cenpower and the government.
“As a gesture, the government also decided to give us a 10-year extension of the PPA,” he said, adding that the arrangement also involves “a reduction in the tariff we are giving.”
The deal adds to the government’s wider effort to restructure debts owed to power producers and revise existing agreements to reduce the financial burden on the electricity sector.
Vice President urges environmental responsibility
Vice President Professor Naana Jane Opoku-Agyemang, who attended the anniversary ceremony as special guest of honour, praised Cenpower’s contribution to Ghana’s electricity supply over the past decade.
She also drew attention to the company’s work in communities around the Kpone plant, including efforts to tackle plastic pollution along the Sega Beach shoreline.
Cenpower has also undertaken waste management and biodiversity conservation education for pupils of Paul Methodist School. “These are all worthwhile initiatives,” Prof Opoku-Agyemang said.
She asked the company not to lose sight of the environmental and social effects of operating a major thermal power facility.
“I encourage Cenpower to maintain its relationship with the surrounding communities and continue to pay attention to the environmental and social consequences of its operations.” - Prof Opoku-Agyemang
Plant marks decade of power generation
The Kpone facility has become an important part of Ghana’s thermal generation system since Cenpower began commercial operations.
The company says electricity generated from the plant has served approximately one million households over the period.
Cenpower has also received international recognition for its operating performance, including recognition under the Operational Reliability Analysis Program.
The latest agreement comes as government continues to deal with accumulated liabilities in the power sector, where unpaid obligations to generators and fuel suppliers have placed sustained pressure on public finances.
The International Monetary Fund has said Ghana’s restructuring agreements with operational Independent Power Producers have included debt discounts, payment plans and revisions to some PPAs aimed at reducing future power generation costs.
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