Ghana’s energy sector, which had been burdened by years of unpaid obligations and declining investor confidence, has now been stabilised following decisive financial interventions by the government, according to the Ministry of Finance.
The Ministry said that by the end of December 2025, the John Dramani Mahama administration had injected a total of US$1.47 billion into the sector to reverse its near-collapse and restore operational stability. When President Mahama took office in January 2025, the energy sector was struggling under mounting debts, particularly for gas supplied from the Offshore Cape Three Points (OCTP) field, a situation that threatened the sustainability of power generation.
As a result of prolonged non-payment, the US$500 million World Bank Partial Risk Guarantee (PRG) — a critical risk-mitigation facility established in 2015 — had been completely exhausted under the previous administration. The PRG had been instrumental in attracting close to US$8 billion in private investment through the Sankofa Gas Project by guaranteeing payments to partners ENI and Vitol in the event of default.
The Ministry revealed that the government has since fully settled US$597.15 million, including accrued interest, drawn under the World Bank guarantee. This repayment has restored the PRG in full, sending a strong signal of Ghana’s renewed creditworthiness and commitment to its international partners.
In parallel with restoring the PRG, the government also moved to clear long-standing arrears owed to Independent Power Producers (IPPs). In 2025 alone, approximately US$393 million was paid to IPPs after the successful renegotiation of their contracts to ensure better value for money for the state.
The beneficiaries of these payments included Karpowership Ghana, which received US$120 million; Cenpower Generation, US$59.4 million; Sunon Asogli, US$54 million; Early Power, US$42 million; Twin City Energy (Amandi), US$38 million; AKSA Energy and Cenit Energy, US$30 million each; BXC Company, US$10.56 million; and Meinergy Technology, US$8.82 million.
Beyond clearing legacy debts, the Ministry said government has also engaged upstream oil and gas producers, including Tullow Oil and Jubilee Field partners, to establish a clear payment roadmap for gas supplied to the power sector. These engagements are aimed at ensuring reliable electricity generation, supporting industrial expansion, and improving sector sustainability.
The Ministry noted that these efforts have already resulted in increased gas production, reducing Ghana’s reliance on costly liquid fuels for power generation. It added that sufficient budgetary allocations have been made to guarantee timely payments going forward, assuring the public and industry players that the country has entered a new phase of discipline and accountability in energy sector financing.
