Ghana’s Independent Power Producers (IPPs) have acknowledged receiving a sizable amount of long-overdue legacy arrears from the government, characterising the payments as a significant boost to stability and confidence in the nation’s energy industry.
The IPPs praised the government, via the Ministry of Finance and the Ministry of Energy and Green Transition, for what they described as the effective settlement of arrears owing to power producing companies in a statement released in Accra on January 12, 2026.
The IPPs claim that the payments, many of which were made in 2025, represent a sea change for the energy industry, which has been plagued for years by unpaid debts.
“The clearance of these long-outstanding obligations… represents a major milestone in restoring financial stability and operational confidence across the power sector,” the statement said.
The accomplishment, they said, demonstrates “decisive leadership, disciplined fiscal management, and a clear commitment by Government to resolving inherited structural challenges that have constrained the sector for several years.”
The IPPs additionally thanked the Ministry of Energy and Green Transition for implementing reforms including the Cash Waterfall Mechanism, which has improved service provider payment performance, and emphasised the Ministry of Finance’s involvement in mobilising resources to satisfy the arrears.
The IPPs said that investor confidence in the power market has been “meaningfully restored” and that “these actions have sent a powerful signal to both domestic and international investors that Ghana is firmly committed to honouring its contractual obligations.”
The IPPs’ declaration comes after the Ministry of Finance recently revealed that the government spent roughly US$1.47 billion in 2025 to stabilise and save the energy industry.
This included the payment of roughly US$393 million in legacy debts owed to Independent Power Producers, the settlement of gas delivery arrears, and the reimbursement of sums drawn on the World Bank Partial Risk Guarantee for the Sankofa Gas Project.
According to the Ministry, these payments were a component of a larger plan to restart the energy industry, stop additional debt from building up, and guarantee a steady supply of electricity across the country.
The IPPs reaffirmed their support and promised to keep working with the government to maintain power production and support further reforms.
According to the statement, “the IPGs reaffirm our unwavering commitment to Ghana’s energy security, economic transformation, and industrial development.”
They expressed optimism that “energy sustainability, financial discipline, and shared prosperity for the people of Ghana” will continue to be fuelled by the government’s partnership with power producers.
Source: newsthemegh.com