The government has paid approximately $1.47 billion within its first year in office to resolve the energy sector debt crisis that threatened Ghana’s financial stability and international credibility.
The Ministry of Finance disclosed in a statement on Sunday that the payments, made between January and December 2025, covered outstanding obligations to gas suppliers and Independent Power Producers, while also restoring the World Bank Partial Risk Guarantee that had been depleted under the previous administration.
According to the statement, the energy sector was on the brink of collapse when President John Dramani Mahama took office in January 2025, with years of persistent non-payment for gas supplied to the power sector from the Offshore Cape Three Points field having exhausted the World Bank’s $500 million guarantee.
The Partial Risk Guarantee, established in 2015 under the previous NDC government, was created to safeguard nearly $8 billion in private sector investment into Ghana’s energy sector through the Sankofa Gas Project. The guarantee was designed to ensure payments to project partners ENI and Vitol in case of payment shortfalls.
The statement also announced that government has now fully repaid $597.15 million, including interest, that had been drawn on the World Bank Guarantee as of December 31, 2025.
This achievement has restored the facility in full, according to the Finance Ministry.
Between January and December 2025, the government also settled all outstanding gas invoices owed to ENI and Vitol for electricity generation, with these payments totaling approximately $480 million.
The ministry said Ghana is now fully current on its obligations to the Sankofa partners.
The government has also engaged with Tullow Oil and the Jubilee Field partners, agreeing on a payment roadmap for all gas supplied.
This approach aims to support reliable nationwide electricity generation while accelerating industrial growth.
In addition to gas payments, the Government paid approximately $393 million in legacy debts to Independent Power Producers in 2025.
The government also renegotiated all IPP agreements to secure improved value for money.
The breakdown of IPP payments for 2025 is as follows:
- Karpowership Ghana Co. Ltd – $120 million
- Cenpower Generation Co. Ltd – $59.4 million
- Twin City Energy (Amandi) – $38 million
- Early Power Ltd – $42 million
- BXC Company Ltd – $10.6 million
- Meinergy Technology – $8.8 million
- Sunon Asogli Ghana Ltd – $54 million
- AKSA Energy Limited – $30 million
- Cenit Energy Ltd – $30 million
The ministry stated that through disciplined implementation of the Cash Waterfall Mechanism, the government has remained current on largely all IPP invoices for 2025 and is committed to further improving payment performance going forward.
The government has assured the public, industry stakeholders, and international partners that the era of uncontrolled energy sector debt accumulation is over, with adequate budgetary provisions now secured to sustain timely payments.
The energy sector debt crisis had been a major concern for investors and development partners, with the depletion of the World Bank guarantee threatening future investment in Ghana’s energy infrastructure.
The resolution of these debts is expected to restore confidence in Ghana’s energy sector and support the government’s economic recovery agenda.
Richard Aniagyei, ISD
