The Government of Ghana under President John Dramani Mahama says it has paid a total of US$1.47 billion within its first year in office to stabilise the country’s energy sector, clear long-standing debts, and fully restore Ghana’s standing with key international partners, including the World Bank.
According to official government figures, the intervention addressed one of the most serious fiscal risks inherited at the start of the administration in January 2025: a heavily indebted energy sector weighed down by years of unpaid gas bills and depleted credit guarantees.
At the centre of the crisis was the World Bank Partial Risk Guarantee (PRG) linked to the Sankofa Gas Project at the Offshore Cape Three Points (OCTP) field. The US$500 million guarantee, established in 2015 to protect investors against payment shortfalls, had been fully drawn down under the previous administration after persistent non-payment for gas supplied by project partners ENI and Vitol.
Government says that by 31 December 2025, it had fully repaid US$597.15 million, including interest, to the World Bank, restoring the PRG in full. The repayment is expected to rebuild investor confidence and reaffirm Ghana’s credibility in international financial markets, particularly in the energy and infrastructure space.
In parallel, the Ministry of Finance confirmed that all outstanding gas invoices owed to ENI and Vitol for power generation were settled between January and December 2025. These payments amounted to approximately $480 million, bringing Ghana fully up to date on its obligations to the Sankofa partners and securing continued gas supply for electricity generation.
The government says budgetary provisions have now been locked in to ensure timely payments going forward, a move aimed at preventing a repeat of the arrears cycle that previously destabilised the sector.
Beyond OCTP, the Mahama administration has also engaged upstream producers at the Jubilee Field, including Tullow Oil and its partners, agreeing on a payment roadmap to guarantee full settlement for gas off-taken. These engagements have reportedly already contributed to increased domestic gas production, supporting the government’s strategy to expand local supply and reduce dependence on more expensive liquid fuels.
A major component of the 2025 payments also went toward clearing legacy debts owed to Independent Power Producers (IPPs). Government figures show that about $393 million was paid to IPPs during the year following renegotiation of power purchase agreements to improve value for money.
The payments included US$120 million to Karpowership Ghana, US$59.4 million to Cenpower Generation, US$54 million to Sunon Asogli, US$42 million to Early Power, US$38 million to Twin City Energy (Amandi), and additional settlements with AKSA Energy, Cenit Energy, BXC Company, and Meinergy Technology.
In total, IPP payments for 2025 reached US$392.8 million, according to the Ministry of Finance.
Officials say these efforts were supported by stricter enforcement of the Cash Waterfall Mechanism, which prioritises payments within the power sector value chain. As a result, government says it has remained largely current on IPP invoices for 2025 and intends to further strengthen payment discipline in the years ahead.
The government has described the US$1.47 billion intervention as a decisive break from what it calls an era of uncontrolled debt accumulation in the energy sector, stressing that restoring financial stability is essential for reliable electricity supply, industrial expansion, and long-term economic growth.
Authorities have assured industry stakeholders and international partners that Ghana is now committed to predictable payments, improved governance, and a sustainable energy financing framework.
