The Government of Ghana, under the leadership of President John Dramani Mahama, has paid a total of US$1.47 billion to stabilise the country’s energy sector, successfully clearing legacy debts and fully restoring the World Bank Partial Risk Guarantee (PRG) within its first year in office.
According to a press release issued by the Ministry of Finance on Monday, the intervention brings to an end years of crippling debt accumulation that posed a serious threat to Ghana’s financial stability and international credibility.
When President Mahama assumed office in January 2025, the energy sector was on the brink of collapse due to persistent non-payment for gas supplied to power producers from the Offshore Cape Three Points (OCTP) field. As a result, the US$500 million World Bank PRG, which underpinned the Sankofa Gas Project, had been completely exhausted under the previous administration.
The PRG, established in 2015, played a critical role in attracting nearly US$8 billion in private sector investment into Ghana’s energy sector by guaranteeing payments to key project partners, ENI and Vitol. Its depletion was widely viewed as a governance failure that undermined investor confidence and Ghana’s standing on the global financial stage.
The Ministry of Finance disclosed that by December 31, 2025, government had fully repaid US$597.15 million, including interest, drawn under the World Bank Guarantee, thereby restoring the facility in full. This achievement, the Ministry noted, reaffirms Ghana’s reputation as a credible and reliable partner to international investors and development institutions.
In addition, between January and December 2025, government settled approximately US$480 million in outstanding gas invoices owed to ENI and Vitol for electricity generation, ensuring Ghana is fully current on its obligations to the Sankofa partners. Adequate budgetary provisions have also been secured to sustain timely payments going forward.
As part of broader sector reforms, government engaged upstream partners, including Tullow Oil and Jubilee Field partners, agreeing on a comprehensive roadmap to guarantee full payment for all gas off-taken. These engagements have already resulted in increased gas production, supporting efforts to scale up domestic gas supply, reduce reliance on expensive liquid fuels, and meet growing national energy demand.
The Mahama Administration has also renegotiated all Independent Power Producer (IPP) agreements to secure improved value for money. In 2025 alone, government paid approximately US$393 million in legacy IPP debts. Beneficiaries included Karpowership Ghana, Cenpower, Twin City Energy (Amandi), Early Power, Sunon Asogli, AKSA Energy, Cenit Energy, and others.
The Ministry emphasised that disciplined implementation of the Cash Waterfall Mechanism by the Ministry of Energy has ensured government remains largely current on IPP invoices for 2025, with a firm commitment to improving payment performance across the sector.
Altogether, the Ministry of Finance stated that the US$1.47 billion spent in the 2025 fiscal year represents a decisive rescue and reset of Ghana’s energy sector, laying a solid foundation for reliable nationwide power generation and accelerated industrial growth.
“The era of uncontrolled energy sector debt accumulation is over,” the government assured the general public, industry stakeholders, and international partners.
Issued by the Public Relations Unit, Ministry of Finance.
