The Government of Ghana has paid US$1.47 billion to clear legacy energy sector debts, restoring the depleted World Bank guarantee and settling arrears owed to power producers.
In a press release issued by the Ministry of Finance on January 12, 2026, the government said the payments were made within the first year of President John Dramani Mahama’s administration to address what it described as “one of the gravest risks to Ghana’s financial stability.”
“The Government of Ghana, under the leadership of President John Dramani Mahama, has decisively resolved the crippling energy sector debt,” the statement said.
According to the ministry, when President Mahama assumed office in January 2025, the sector was “pushed to the brink by years of persistent non-payment for gas supplied to the power sector” from the Offshore Cape Three Points (OCTP) field.
As a result, the US$500 million World Bank Partial Risk Guarantee, which supported the Sankofa Gas Project, had been “completely depleted” under the previous administration, undermining Ghana’s international credibility.
In response, government said it had, as of December 31, 2025, “fully repaid US$597.15 million, inclusive of interest, drawn on the World Bank Guarantee,” restoring the facility in full.
“This achievement has restored the facility in full and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage,” the ministry noted.
The statement further disclosed that government settled all outstanding gas invoices owed to ENI and Vitol, amounting to about US$480 million, to ensure Ghana is “fully current on its obligations to the Sankofa partners.”
The Mahama administration also engaged Tullow Oil and Jubilee Field partners, agreeing on what it described as “a comprehensive roadmap to guarantee full payment for all gas off-taken,” aimed at supporting reliable electricity generation and industrial growth.
As part of broader reforms, government said it had renegotiated all Independent Power Producer (IPP) agreements to secure “improved value for money for the Ghanaian people.”
In 2025 alone, about US$393 million was paid in legacy IPP debts to companies including Karpowership, Cenpower, Sunon Asogli, AKSA Energy and others.
Altogether, the ministry said, “the Ministry of Finance has paid approximately US$1.470 billion in the 2025 fiscal year to rescue and restore Ghana’s energy sector.”
The government assured the public and international partners that “the era of uncontrolled energy sector debt accumulation is over,” adding that it remains committed to improving payment performance across all IPP obligations.
