The Ministry of Finance has announced that the Mahama administration has paid approximately US$1.470 billion to clear inherited energy sector debts and restore Ghana’s World Bank Partial Risk Guarantee within its first year in office.
According to the Ministry, the payments were part of a comprehensive energy sector reset aimed at addressing long-standing arrears, restoring investor confidence and stabilising electricity generation after years of persistent non-payment under the previous administration.
In a press release issued on January 12, the Finance Ministry said the energy sector had been pushed to the brink when President John Dramani Mahama assumed office in January 2025.
The statement explained that prolonged failure to pay for gas supplied from the Offshore Cape Three Points field had led to the complete depletion of a US$500 million World Bank Partial Risk Guarantee.
They noted that the Partial Risk Guarantee (PRG), established in 2015 under the previous NDC Government, was a critical safeguard that enabled nearly US$8 billion in private sector investment into Ghana’s energy sector through the Sankofa Gas Project.
“It was designed to guarantee payments to the project partners, ENI and Vitol, in the event of payment shortfalls. Its exhaustion represented a serious governance failure that undermined Ghana’s international credibility.”
As part of efforts to reverse the situation, the Ministry disclosed that government had, as at December 31, 2025, fully repaid US$597.15 million, inclusive of interest, drawn on the World Bank guarantee.
“This achievement has restored the facility in full and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage.”
Between January and December 2025, government also settled all outstanding gas invoices owed to ENI and Vitol for electricity generation, with payments totalling approximately US$480 million.
The Ministry said this has ensured that Ghana is fully current on its obligations to the Sankofa partners, with budgetary provisions in place to sustain timely payments going forward.
The statement further indicated that government has held engagements with Tullow Oil and Jubilee Field partners and agreed on a roadmap to guarantee full payment for all gas off-taken.
“This approach is aimed at supporting reliable nationwide electricity generation while accelerating industrial growth.”
According to the Ministry of Finance, engagements with Ghana’s upstream partners have already resulted in increased gas production, driven by a national strategy to expand domestic gas supply and reduce dependence on costly liquid fuels.
In addition to gas-related obligations, as part of its broader energy sector reset, the Mahama Administration has successfully renegotiated all Independent Power Producer agreements to secure improved value for money for the Ghanaian people.
In their first year in office, Government paid approximately US$393 million in legacy IPP debts, further anchoring the gains made in restoring stability to the sector.
Beneficiaries of the payments included Karpowership Ghana, Cenpower Generation Company, Twin City Energy, Early Power, Sunon Asogli, AKSA Energy, and several others.
The statement continued, “Altogether, the Ministry of Finance has paid approximately US$1.470 billion in the 2025 fiscal year to rescue and restore Ghana’s energy sector.”
The statement added that beyond clearing inherited arrears, the Ministry of Energy’s disciplined implementation of the Cash Waterfall Mechanism has ensured that government remains largely current on IPP invoices for 2025, with a firm commitment to improving payment performance going forward.
“The Government of Ghana assures the general public, industry stakeholders, and international partners that the era of uncontrolled energy sector debt accumulation is over.”
