In its first year in office, the Ghanaian government claims to have paid US$1.47 billion to pay long-standing energy sector debts and reinstate the World Bank’s Partial Risk Guarantee, which it characterises as a significant turnaround for the industry.
The Mahama administration took over an energy sector on the verge of collapse, according to a statement released by the Ministry of Finance on Monday, January 12, 2026.
This was because the US$500 million World Bank Partial Risk Guarantee had been fully depleted due to years of non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field.
The Ministry noted that the guarantee, established in 2015 under a previous NDC administration, was critical in unlocking nearly US$8 billion in private sector investment through the Sankofa Gas Project.
Its exhaustion, the statement said, “represented a serious governance failure that undermined Ghana’s international credibility.”
“As at 31 December 2025, government has fully repaid US$597.15 million, inclusive of interest, drawn on the World Bank Guarantee,” the Ministry stated, adding that the repayment has fully restored the facility and reaffirmed Ghana’s standing as “a credible and reliable partner on the global stage.”
In addition to reinstating the guarantee, the government secured financial provisions to assure future prompt payments while settling outstanding gas invoices owed to ENI and Vitol totaling approximately US$480 million, according to the Ministry.
NKONKONSA.com
