The Ministry of Finance says the government has decisively resolved Ghana’s crippling energy sector debt, describing the move as a major step in restoring financial stability and international confidence.
In a statement released on Monday, January 12, the Ministry stated that, as of December 31, 2025, the John Mahama administration had repaid a total of US$1.47 billion to rescue and reset the energy sector.
According to the statement, when President John Dramani Mahama assumed office in January 2025, the sector was on the brink of collapse due to years of non-payment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field.
This situation had led to the complete depletion of the US$500 million World Bank Partial Risk Guarantee (PRG) under the previous administration.
The PRG, established in 2015, was a key safeguard that enabled nearly US$8 billion in private sector investment through the Sankofa Gas Project by guaranteeing payments to partners ENI and Vitol in the event of payment shortfalls.
The Ministry said the government has now fully repaid US$597.15 million, including interest, drawn on the World Bank guarantee, restoring the facility in full and reaffirming Ghana’s credibility with international partners.
Between January and December 2025, the government also settled all outstanding gas invoices owed to ENI and Vitol, amounting to approximately US$480 million, ensuring Ghana is fully up to date on its obligations to the Sankofa partners.
In addition, the Ministry disclosed that the government paid about US$393 million in legacy debts to Independent Power Producers (IPPs) in 2025 alone, following the successful renegotiation of all IPP agreements to secure better value for money.
Payments made to IPPs included:
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Karpowership Ghana – US$120 million
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Cenpower Generation – US$59.4 million
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Sunon Asogli – US$54 million
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Early Power – US$42 million
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Twin City Energy (Amandi) – US$38 million
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AKSA Energy – US$30 million
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Cenit Energy – US$30 million
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BXC Company – US$10.56 million
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Meinergy Technology – US$8.82 million
The Ministry stated that the government has also engaged upstream partners, including Tullow Oil and Jubilee Field partners, to agree on a roadmap that ensures full payment for gas supplied, supports reliable electricity generation, and boosts industrial growth.
It added that increased gas production has already been achieved through these engagements, aimed at reducing reliance on expensive liquid fuels.
The Finance Ministry assured the public and industry stakeholders that adequate budgetary provisions have been made to sustain timely payments going forward, stressing that “the era of uncontrolled energy sector debt accumulation is over.”
