Karpower to shut down May 18 over $400 million debt
By Praisebell Rosemond Larbi
The Minister for Energy and Green Transition, John Abdulai Jinapor, has revealed that Turkish power producer, Karpowership, has served notice of a complete shutdown of its operations in Ghana by Saturday, May 18, 2025, due to an outstanding debt of over $400 million.
Speaking to the media in Accra, the Minister said the company’s decision follows months of delayed payments and failed negotiations with government agencies responsible for power purchases.
“Karpower has officially informed us that they will cease operations if the arrears are not settled. The $400 million debt has accumulated over time, and the company says it is no longer able to continue supplying power under these conditions,” Mr. Jinapor disclosed.
He described the situation as dire and warned that the shutdown could have a significant impact on national electricity supply, as Karpowership contributes a substantial portion of Ghana’s thermal power capacity.
“This is a serious threat to our energy security. We are working around the clock to resolve this, but I must be honest with Ghanaians, — if we do not act swiftly, we will see disruptions in power delivery,” he cautioned.
Mr. Jinapor said the government is engaging all relevant stakeholders, including the Ministry of Finance, the Electricity Company of Ghana (ECG), and the Public Utilities Regulatory Commission (PURC), to explore emergency funding options and restructure payment plans to avert the shutdown.
He also called for transparency and efficiency in the management of Ghana’s energy finances, stressing that legacy debts and poor revenue recovery remain critical challenges facing the sector.
Karpowership has been supplying electricity to Ghana since 2015 as part of emergency power agreements aimed at ending the country’s recurring energy crises. The company operates a floating power plant currently stationed at the Tema port. The Minister assured the public that contingency plans are being developed to cushion any potential shortfalls, but reiterated that a long-term solution requires urgent financial discipline and reforms in the energy sector.
