The Ministry of Finance says the Mahama administration has paid a total of US$1.470 billion in 2025 to stabilise Ghana’s energy sector, clear inherited arrears and fully restore the World Bank Partial Risk Guarantee (PRG) that underpinned the country’s flagship Sankofa Gas Project.
In a statement released by the Ministry, Government described the intervention as a decisive move to reverse what it called one of the gravest threats to Ghana’s financial stability.
“The Government of Ghana, under the leadership of President John Dramani Mahama, has decisively resolved the crippling energy sector debt that posed one of the gravest risks to Ghana’s financial stability,” the statement said.
According to the Ministry, when President Mahama took office in January 2025, years of persistent non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field had pushed the sector “to the brink,” leading to the complete depletion of the US$500 million World Bank Partial Risk Guarantee under the previous administration.
The PRG, established in 2015, was described as “a critical safeguard” that enabled nearly US$8 billion in private sector investment into Ghana’s energy sector through the Sankofa Gas Project. Its exhaustion, the Ministry noted, “represented a serious governance failure that undermined Ghana’s international credibility.”
As part of efforts to restore confidence, Government says it has fully repaid US$597.15 million, inclusive of interest, drawn on the World Bank Guarantee as at December 31, 2025.
“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 stated.
In addition, Government settled all outstanding gas invoices owed to ENI and Vitol between January and December 2025, amounting to about US$480 million, ensuring Ghana is “fully current on its obligations to the Sankofa partners.”
The Finance Ministry further revealed that engagements with upstream partners, including Tullow Oil and Jubilee Field partners, have resulted in a roadmap to guarantee full payment for gas off-taken, while supporting reliable electricity generation and industrial growth.
“Engagements with Ghana’s upstream partners have already resulted in increased gas production, guided by a clear national vision to rapidly scale up domestic gas supply… and reduce reliance on expensive liquid fuels,” the statement said.
As part of a broader energy sector reset, the Mahama administration also renegotiated all Independent Power Producer (IPP) agreements and paid approximately US$393 million in legacy IPP debts in 2025 alone.
Major payments included US$120 million to Karpowership, US$59.4 million to Cenpower, US$54 million to Sunon Asogli, and US$42 million to Early Power**, among others.
“Altogether, the Ministry of Finance has paid approximately US$1.470 billion in the 2025 fiscal year to rescue and restore Ghana’s energy sector,” the statement stressed.
Beyond clearing arrears, Government says it has remained largely current on IPP invoices through the disciplined implementation of the Cash Waterfall Mechanism and is committed to further improving payment performance.
“The Government of Ghana assures the general public, industry stakeholders, and international partners that the era of uncontrolled energy sector debt accumulation is over,” the statement noted.
