The government has revealed that the ongoing parliamentary deadlock is hindering progress on debt restructuring agreements with several Independent Power Producers (IPPs).

During the Finance Ministry’s monthly economic briefing, the sector Minister, Dr. Mohammed Amin Adam, explained that while agreements with three IPPs—AKSA, Asogli, and CENIT—have either been finalized or are near completion, negotiations with two others, CEN Power and AMANDI, remain stalled due to the parliamentary impasse.

“We have fulfilled our obligations in the negotiation process. Some IPPs, like AKSA, have already signed their agreements, while Asogli and CENIT are on the verge of doing so. However, the agreements with CEN Power and AMANDI require parliamentary approval, and progress is currently delayed by the ongoing stalemate,” Dr. Amin Adam stated.

He assured stakeholders that the government is committed to stabilizing the energy sector and maintaining a reliable power supply despite these challenges.

“Until parliament resumes and approves the agreements for CEN Power and AMANDI, these will remain unresolved. Nevertheless, we have been diligent in meeting our commitments,” the minister added.

The delay could worsen the country’s energy situation, potentially leading to power shortages, commonly referred to as dumsor, and further disrupting economic activities. With the festive season approaching, there is heightened concern among stakeholders about the stability of power supply to avoid a full-blown energy crisis.

Parliament has been on an indefinite break, as the two main political parties are embroiled in a dispute over majority control. The minister acknowledged the broader economic impact of this impasse, stating, “The economy has undoubtedly felt the strain.”

Parliament is scheduled to reconvene on December 16, 2024, raising hopes for a resolution to the current challenges.

Source: TheDotNews