GHANA SETTLES $1.47 BILLION ENERGY SECTOR DEBT TO RESTORE POWER STABILITY
Government pays off legacy debts to IPPs, gas suppliers, and reinstates World Bank guarantee in bid to ensure reliable electricity supply.
The Government of Ghana has cleared a total of US$1.47 billion in long-standing energy sector debts in 2025, a move officials say will restore stability to the country’s power supply and rebuild international investor confidence.
According to the Ministry of Finance, the payments included $597.15 million to fully reinstate a World Bank partial risk guarantee that had been exhausted under the previous administration. The reinstated guarantee is crucial for securing nearly $8 billion in private investment for key gas projects, including the Offshore Cape Three Points field and the Sankofa Gas Project.
The settlement also covered approximately $480 million in outstanding gas invoices owed to partners ENI and Vitol, and about $393 million in legacy debts to Independent Power Producers such as Karpowership and Cenpower.
Officials described the comprehensive debt clearance as a decisive reset of Ghana’s power sector, ending years of arrears that threatened electricity reliability and economic growth. The government emphasized that budget provisions and renegotiated agreements with upstream partners will help keep future payments current and boost domestic gas output.
The move is part of President John Dramani Mahama’s broader strategy to stabilize the energy sector within his first year in office, ensuring a more predictable and sustainable power supply for households and industries.
Source:NKONKONSA.com
