Ghana to Invest $1 Billion to Replace Expensive Power Loans
- Power companies face high risk premium due to legacy debt
- Sector debt could reach $12.5 billion by 2023 if not addressed
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Ghana will invest $1 billion this year to refinance loans contracted by private power producers, as it seeks to cut costs and curb ballooning debt in its energy sector.
The West African nation and some of the contractors agreed on the plan during the renegotiation of power deals that began in November 2019, a finance ministry spokesman said in an emailed response to questions. The investment will be done through the Ghana Infrastructure Investment Fund using proceeds from last year’s Eurobond sale, the ministry said.