Ghana’s Ministry of Finance announced on January 12, 2026, that the government paid a total of $1.47 billion in 2025 to settle legacy energy sector debts, marking a major reset under President John Dramani Mahama’s first year in office.
The payments, detailed in an official statement, addressed accumulated arrears that had threatened the sector’s stability. A key achievement was the full restoration of the World Bank Partial Risk Guarantee (PRG) for the Sankofa Gas Project, achieved by repaying $597.15 million, including interest. The $500 million PRG, established in 2015, had been exhausted due to prior non-payments and supported nearly $8 billion in private investments through ENI and Vitol.
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Additionally, the government settled approximately $480 million in outstanding gas invoices to ENI and Vitol, bringing obligations current as of December 31, 2025. It also renegotiated agreements with independent power producers (IPPs), paying about $393 million in legacy debts to entities including Cenpower Generation, Twin City Energy (Amandi), Early Power, Sunon Asogli, BXC Company, Meinergy Technology, and Cenit Energy.
To ensure ongoing stability, the administration strengthened the Cash Waterfall Mechanism for timely IPP payments and engaged upstream producers like Tullow Oil and Jubilee Field partners on a roadmap for full gas supply compensation, which has already boosted production.
The ministry described the settlements as a “decisive reset,” emphasizing fiscal discipline to prevent future debt buildup and support industrial growth. “The era of unchecked energy sector debt accumulation is over,” the statement read.
These reforms align with broader efforts to rebuild credibility with international partners and stabilize power supply, reducing reliance on costly liquid fuels amid chronic outages.
