The government has paid about US$1.47 billion within its first year in office to clear legacy energy sector debts and restore a depleted World Bank guarantee, Finance Minister Dr. Cassiel Ato Forson has announced.
In a statement posted on X, Dr. Forson said the payments were part of decisive measures taken by the administration of President John Dramani Mahama to stabilise Ghana’s energy sector and address what he described as one of the most serious threats to the country’s financial credibility.
According to the minister, when President Mahama assumed office in January 2025, the energy sector was under severe strain due to years of unpaid gas bills for power generation from the Offshore Cape Three Points (OCTP) Sankofa field. This situation, he said, had led to the complete depletion of a US$500 million World Bank Partial Risk Guarantee (PRG) under the previous administration.
The PRG, established in 2015 during a previous National Democratic Congress (NDC) government, was designed to guarantee payments to Sankofa Gas Project partners ENI and Vitol in the event of shortfalls by the power sector.
Dr. Forson noted that the facility played a key role in mobilising nearly US$8 billion in private sector investment into Ghana’s energy industry, and its exhaustion had undermined the country’s international standing.
He said that as of December 31, 2025, government had fully repaid US$597.15 million, including interest, drawn on the World Bank guarantee, thereby restoring the facility in full.
“This achievement has reaffirmed Ghana’s standing as a credible and reliable partner on the global stage,” the minister said.
Dr. Forson added that between January and December 2025, government also settled all outstanding gas invoices owed to ENI and Vitol for electricity generation, amounting to approximately US$480 million, ensuring that Ghana is now fully up to date on its obligations to the Sankofa partners.
He said adequate budgetary provisions have been made to sustain timely payments going forward, while engagements with Tullow Oil and the Jubilee Field partners have produced a roadmap to guarantee full payment for gas supplied to the power sector.
According to the finance minister, these steps are aimed at supporting reliable electricity generation nationwide, accelerating industrial growth, and reducing reliance on costly liquid fuels through increased domestic gas production.
As part of what he described as a broader energy sector reset, Dr. Forson said the Mahama administration has renegotiated all Independent Power Producer (IPP) agreements to secure improved value for money.
In 2025 alone, government paid about US$393 million in legacy IPP debts. Beneficiaries included Karpowership Ghana, Sunon Asogli, Cenpower, Early Power, AKSA Energy, Cenit Energy, and other power producers.
Dr. Forson said the combined payments — covering World Bank guarantee repayments, gas supply arrears, and IPP debts — totalled approximately US$1.47 billion in the 2025 fiscal year.
He said the interventions have helped restore stability to the energy sector and laid the foundation for sustained power supply and long-term economic growth.
Source: www.kumasimail.com
