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The Ministry of Finance has announced that the Mahama administration paid a total of US$1.470 billion in 2025 to clear accumulated energy sector debts and restore Ghana’s World Bank Partial Risk Guarantee, describing the move as a decisive reset of the country’s power sector.
In a statement dated January 12, 2026, the Ministry said that when President John Dramani Mahama assumed office in January 2025, the energy sector was under severe financial strain due to persistent non-payment for gas supplied to the power sector from the Offshore Cape Three Points field. As a result, the US$500 million World Bank Partial Risk Guarantee had been fully depleted.
The guarantee, established in 2015, was a key instrument that supported nearly US$8 billion in private sector investment through the Sankofa Gas Project by guaranteeing payments to ENI and Vitol in the event of shortfalls. Its exhaustion, the Ministry noted, had significantly undermined Ghana’s credibility with international partners.
According to the statement, government fully repaid US$597.15 million, including interest, drawn on the World Bank guarantee as of December 31, 2025. This repayment restored the facility in full and reaffirmed Ghana’s standing as a credible partner on the global financial market.
Between January and December 2025, government also settled all outstanding gas invoices owed to ENI and Vitol for electricity generation, amounting to approximately US$480 million. The Ministry said adequate budgetary provisions have been secured to ensure timely payments going forward.
The statement further disclosed that government has engaged upstream partners, including Tullow Oil and Jubilee Field operators, agreeing on a roadmap to guarantee full payment for all gas supplied. These engagements have already resulted in increased gas production to support reliable electricity generation and industrial growth, while reducing dependence on expensive liquid fuels.
As part of broader energy sector reforms, the Mahama administration renegotiated Independent Power Producer agreements to secure improved value for money. In 2025 alone, government paid about US$393 million in legacy IPP debts.
Payments included US$120 million to Karpowership Ghana, US$59.44 million to Cenpower Generation, US$37.99 million to Twin City Energy, US$42 million to Early Power, US$10.56 million to BXC Company, US$8.82 million to Meinergy Technology, US$54 million to Sunon Asogli Power, US$30 million to AKSA Energy, and US$30 million to Cenit Energy.
The Ministry of Finance said the total payments made in the 2025 fiscal year to stabilise and restore the energy sector amounted to approximately US$1.470 billion.
Beyond clearing inherited arrears, the statement noted that disciplined implementation of the Cash Waterfall Mechanism by the Ministry of Energy has helped government remain largely current on IPP invoices for 2025, with firm commitments to further improve payment performance.
The Ministry assured the public, industry stakeholders, and international partners that the era of uncontrolled energy sector debt accumulation is over, signalling a renewed focus on fiscal discipline, energy security, and sustainable power sector management.
