The government has paid about $1.47 billion in 2025 to clear inherited energy-sector debts, restoring stability to a sector long strained by arrears, a source at the Ministry of Finance said.
The payments included the full repayment of a depleted $500 million World Bank Partial Risk Guarantee (PRG) for natural gas supplies from the Sankofa Field, as well as interest, allowing the guarantee to be reinstated, the source said.
“Altogether, the Ministry of Finance has paid approximately $1.470 billion in the 2025 fiscal year to rescue and restore Ghana’s energy sector,” the Finance Ministry told journalists.
Between January and February last year, the government paid $480 million to settle all outstanding gas invoices owed to ENI and Vitol for electricity generation, bringing the country current on obligations to Sankofa partners, the source added.
The government also cleared $393 million in legacy debts owed to Independent Power Producers (IPPs), including payments to Karpower Ghana, Cenpower, Sunon Asogli, Early Power, Twin City Energy, AKSA Energy and others.
In total, $597.15 million, including interest, was repaid on the World Bank guarantee by Dec. 31, 2025, restoring the facility in full, the source said. “This achievement has restored the facility in full and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage,” the Ministry added.
When President John Dramani Mahama took office in January last year, the energy sector was near collapse after years of non-payment for gas supplied from the Offshore Cape Three Points field, which had exhausted the PRG.
Beyond clearing arrears, the government said it remained current on most 2025 IPP invoices through strict application of the Cash Waterfall Mechanism. “The government is firmly committed to further improving payment performance across all IPP obligations going forward.”
