Ghana Races Against Time as Fresh Talks Begin to Avert Karpowership Shutdown
The Government of Ghana is set to resume high-stakes negotiations with Karpowership Ghana Company Ltd today, Monday, May 5, in a last-ditch effort to prevent a shutdown of the company’s floating power barges over $400 million in unpaid arrears.
Last Thursday’s emergency talks, convened at the Ministry of Finance, ended without resolution. Attended by Energy and Green Transition Minister John Abdulai Jinapor and Finance Minister Dr. Cassiel Ato Forson, the meeting aimed to secure a partial settlement that would keep Karpowership operational and avert nationwide power disruptions.
Karpowership, a major contributor to Ghana’s baseload power supply, has warned of an imminent suspension if the outstanding debt remains unpaid. A shutdown would severely impact electricity supply across the country, threatening key sectors such as manufacturing, telecommunications, and financial services.
High Stakes for Economy and Stability
Today’s follow-up meeting is expected to focus on bridging the payment gap, amid Ghana’s growing energy sector debt crisis. Karpowership’s arrears form part of a larger $2 billion liability owed to Independent Power Producers (IPPs), which continues to strain the national power grid.
With reserves from the World Bank’s energy sector guarantee dwindling and key fuel agreements stretched thin, officials are under pressure to find a short-term financial solution while pursuing long-term structural reforms.
Policy Experts Demand Urgent Overhaul
Energy analysts warn that beyond the immediate settlement, Ghana must urgently revisit its power purchase agreements, review tariffs, and improve collection efficiencies to avoid future crises.
