The Government of Ghana has announced the successful payment of approximately US\bm{1.470 billion during the 2025 fiscal year to settle critical energy sector debts and restore the country’s international financial credibility. Under the leadership of President John Dramani Mahama, the administration moved to resolve a mounting crisis inherited in January 2025, which included the total depletion of a US}500 million World Bank Partial Risk Guarantee (PRG) due to years of non-payment for gas supplied from the Offshore Cape Three Points field. By December 31, 2025, the government fully repaid US$597.15 million to restore the guarantee in full, a move officials say reaffirms Ghana’s standing as a reliable partner for global private sector investment.
In addition to restoring the World Bank facility, the government settled approximately US\bm{480 million in outstanding gas invoices owed to Sankofa project partners ENI and Vitol, ensuring all current obligations for electricity generation are met. The Ministry of Finance also directed US}393 million toward clearing legacy debts owed to various Independent Power Producers (IPPs). Key beneficiaries of these payments included Karpowership Ghana, which received US\bm{120 million, and Sunon Asogli Ghana, which received US}54 million, alongside payments to Cenpower, Early Power, and several other providers.
These disbursements were part of a broader “energy sector reset” that included the renegotiation of IPP agreements to ensure better value for money and the disciplined implementation of the Cash Waterfall Mechanism to prevent future arrears.
Beyond the immediate financial settlements, the government has reached a comprehensive roadmap with Tullow Oil and Jubilee Field partners to guarantee future payments for gas off-take.
This strategic engagement has already led to increased domestic gas production, aimed at reducing the nation’s reliance on expensive liquid fuels and supporting industrial growth. Government spokespersons emphasized that these coordinated policy actions and prudent budgetary provisions have effectively ended the era of uncontrolled debt accumulation in the power sector, providing a stable foundation for reliable nationwide electricity generation.
Ruth Abla ADJORLOLO
