Finance Minister Dr. Cassiel Ato Forson has announced that the Mahama-led administration has effectively tackled the significant energy sector debt that threatened Ghana’s financial stability.
A statement from the Ministry of Finance disclosed that by the end of December 2025, the Mahama government has settled US$1.47 billion to pave the way for a stable electricity supply for the Ghanaian economy.
The statement alleged after President John Dramani Mahama was sworn into office, the energy sector was at the brink of collapse due to non-payment for gas from the Offshore Cape Three Points (OCTP) field. And due to that, the World Bank Guarantee of US$500 million had been misappropriated by the erstwhile Akufo-Addo’s administration.
The Partial Risk Guarantee (PRG) was established to facilitate the careful allocation of funds to independent gas suppliers during instances of revenue shortfalls.
Full repayment of US$597.15 million, inclusive of interest, borrowed on the World Bank guarantee has been completed, according to the Ministry. This restores full use of the facility and demonstrates Ghana’s confidence to international partners.
Ghana was able to pay off its outstanding gas bills to ENI and Vitol, totaling almost US$480 million, between January and December 2025. This ensured that the country was current on its payments to the Sankofa partners.
Also,the Government disbursed around US$393 million to settle legacy IPP debts, solidifying the progress achieved in stabilizing the sector.
A mutually agreed-upon pathway that ensures complete compensation for supplied gas, fosters reliable power generation, and supports industrial growth has been established by the government, in collaboration with upstream partners such as Tullow Oil and Jubilee Field partners.
The Ministry of Finance further assured the public and industry stakeholders that sufficient budgetary allocations have been secured to ensure the timely fulfillment of payments in the future, emphasizing that “the period of unrestrained energy sector debt buildup is concluded.”
See below a detailed breakdown of payments to each IPP;
• Karpowership Ghana Co. Ltd – US$120,000,000
• Cenpower Generation Co. Ltd – US$59,444,180
• Twin City Energy (Amandi) – US$37,986,534
• Early Power ltd – US$42,000,000
• BXC Company Ltd – US$10,560,000
• Meinergy Technology – US$8,820,000
• Sunon Asogli Ghana Ltd – US$54,000,000
• AKSA Energy Limited – US$30,000,000
• Cenit Energy ltd – US$30,000,000
TOTAL – US$392,810,714
