The Government of Ghana, under President John Dramani Mahama, has paid approximately US$1.47 billion within its first year in office to stabilise the energy sector, clear legacy debts, and restore the country’s credibility with international partners.
When President Mahama assumed office in January 2025, Ghana’s energy sector was under severe strain following years of unpaid gas bills to suppliers at the Offshore Cape Three Points (OCTP) field. This situation had fully depleted the US$500 million World Bank Partial Risk Guarantee (PRG), a key facility that underpinned investor confidence in the sector.
The PRG, established in 2015, played a critical role in attracting nearly US$8 billion in private investment into the energy sector through the Sankofa Gas Project. Its exhaustion had raised serious concerns about governance and Ghana’s reliability as an investment destination.
By December 31, 2025, the government had fully repaid US$597.15 million, including interest, drawn on the World Bank Guarantee—restoring the facility in full and reaffirming Ghana’s standing on the global financial stage.
In addition, between January and December 2025, the government settled all outstanding gas invoices owed to ENI and Vitol, amounting to about US$480 million, ensuring Ghana is fully up to date on payments to Sankofa partners. Budgetary provisions have also been secured to guarantee timely payments going forward.
The government has further engaged upstream partners, including Tullow Oil and Jubilee Field operators, agreeing on a clear payment roadmap to sustain gas supply for power generation. These engagements have already resulted in increased gas production, supporting reliable electricity generation and reducing dependence on costly liquid fuels.
As part of a broader energy sector reset, the Mahama Administration successfully renegotiated Independent Power Producer (IPP) agreements to secure better value for money. In 2025 alone, about US$393 million was paid to clear legacy IPP debts.
IPP payments in 2025 include:
- Karpowership Ghana – US$120m
- Cenpower Generation – US$59.44m
- Sunon Asogli – US$54m
- Early Power – US$42m
- Twin City Energy (Amandi) – US$37.99m
- AKSA Energy – US$30m
- Cenit Energy – US$30m
- BXC Company – US$10.56m
- Meinergy Technology – US$8.82m
Total IPP payments: US$392.81 million
Overall, the Ministry of Finance disbursed approximately US$1.47 billion in 2025 to restore stability to the energy sector.
Beyond clearing inherited arrears, the government says it has remained largely current on IPP invoices through the disciplined implementation of the Cash Waterfall Mechanism, signaling a firm commitment to preventing future debt accumulation.
The government has assured the public, industry stakeholders, and international partners that the era of unchecked energy sector debt is over.
By paqmediagh/Peter Quao Adattor
