Ghana’s government said it paid about US$1.47 billion in 2025 to clear energy sector arrears, restore a key World Bank guarantee and stabilise electricity supply, a year after President John Dramani Mahama returned to office.
The Ministry of Finance said the payments addressed long-standing debts linked to gas supply, power generation and independent power producers (IPPs), which had posed risks to public finances and investor confidence.
When Mahama took office in January 2025, the energy sector was under strain following years of delayed payments for gas supplied from the Offshore Cape Three Points (OCTP) field, officials said. The arrears had fully depleted a US$500-million World Bank Partial Risk Guarantee (PRG) that backstopped the Sankofa gas project.
The PRG, established in 2015, underpinned nearly US$8 billion in private investment by guaranteeing payments to project partners ENI and Vitol in the event of government defaults.
The finance ministry said that by December 31, 2025, the government had fully repaid US$597.15 million, including interest, drawn under the World Bank guarantee, restoring the facility in full.
“This has reaffirmed Ghana’s credibility with international partners,” the ministry said.
In addition, the government said it paid about US$480 million during the year to settle outstanding gas invoices owed to ENI and Vitol for electricity generation, bringing payments to the Sankofa partners fully up to date.
Authorities said budgetary provisions had been secured to ensure timely payments going forward, while engagements with upstream producers had led to increased gas output.
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The government also said it reached agreements with Tullow Oil and partners in the Jubilee Field on a roadmap to ensure full payment for gas off-taken, as part of efforts to support stable electricity supply and industrial growth.
As part of a broader restructuring of the power sector, the administration said it renegotiated all independent power producer contracts to improve value for money and reduce fiscal risks.
In 2025 alone, the government paid about US$393 million in legacy IPP arrears, according to an official breakdown released by the finance ministry.
The largest payments included US$120 million to Karpowership Ghana, US$59.4 million to Cenpower Generation, US$54 million to Sunon Asogli Ghana, and US$42 million to Early Power. Other beneficiaries included Twin City Energy (Amandi), AKSA Energy, Cenit Energy, Meinergy Technology and BXC Company.
Altogether, payments to IPPs totalled US$392.8 million, the ministry said.
The government said it has also strengthened enforcement of the Cash Waterfall Mechanism, which governs revenue flows in the power sector, and reported that it remained largely current on IPP invoices for 2025.
Energy sector debt has been a recurring challenge in Ghana, contributing to fiscal pressures and disputes with suppliers in recent years. Previous administrations have faced criticism over payment arrears and excess generation capacity.
The finance ministry said the latest measures marked a decisive shift.
“The era of uncontrolled energy sector debt accumulation is over,” it said, pledging further improvements in payment performance and sector governance.
