Ghana’s debilitating energy sector debt has been firmly handled, according to the Ministry of Finance, which views this as a significant step towards re-establishing financial stability and international trust.
As of December 31, 2025, the John Mahama administration had repaid a total of US$1.47 billion to rescue and reset the energy industry, according to a statement issued by the Ministry on Monday, January 12.
The statement claims that after years of nonpayment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field, the industry was on the verge of collapse when President John Dramani Mahama took office in January 2025.
The previous administration’s US$500 million World Bank Partial Risk Guarantee (PRG) was completely depleted as a result of this circumstance.
By guaranteeing payments to partners ENI and Vitol in the event of payment shortfalls, the PRG, which was founded in 2015, was a crucial safety that made approximately US$8 billion in private sector investment possible through the Sankofa Gas Project.
According to the Ministry, the facility has been fully restored and Ghana’s reputation with foreign partners has been reaffirmed since the government has now fully repaid US$597.15 million, including interest, drew on the World Bank guarantee.
Between January and December 2025, the government also settled all outstanding gas invoices owed to ENI and Vitol, totalling roughly US$480 million, ensuring Ghana is completely compliant with its Sankofa obligations.
In addition, the Ministry revealed that the government paid around US$393 million in legacy debts to Independent Power Producers (IPPs) in 2025 alone, following the successful renegotiation of all IPP agreements to ensure greater value for money.
Payments to IPPs include:
- Karpowership Ghana – US$120 million
- Cenpower Generation – US$59.4 million
- Sunon Asogli – US$54 million
- Early Power – US$42 million
- Twin City Energy (Amandi) – US$38 million
- AKSA Energy – US$30 million
- Cenit Energy – US$30 million
- BXC Company – US$10.56 million
- Meinergy Technology – US$8.82 million
According to the Ministry, the government has also worked with upstream partners, such as Tullow Oil and Jubilee Field partners, to reach an agreement on a roadmap that guarantees full payment for gas provided, supports dependable electricity generation, and fosters industrial expansion.
In an effort to lessen dependency on pricey liquid fuels, it also stated that greater petrol production has already been accomplished through these activities.
The Finance Ministry emphasised that “the era of uncontrolled energy sector debt accumulation is over” and reassured the public and industry stakeholders that sufficient budgetary provisions had been made to sustain timely payments going forward.
Source: newsthemegh.com