The Government of Ghana says it has paid a total of $1.47 billion in 2025 to settle long-standing debts in the energy sector, a move officials say has stabilized power supply and rebuilt investor confidence. According to the Ministry of Finance, the payments included $597.15 million to fully reinstate a World Bank partial risk guarantee, which had been depleted in previous years. The guarantee underpins nearly $8 billion in private investment tied to the Offshore Cape Three Points block and the Sankofa Gas Project, a key source of domestic gas for electricity generation.
Government also cleared about $480 million in outstanding gas supply arrears owed to partners ENI and Vitol, and settled roughly $393 million in legacy debts to Independent Power Producers, including Karpowership and Cenpower. These arrears had strained relations with suppliers and raised concerns over payment defaults and potential power disruptions. Officials say the debt clearance was completed within President John Dramani Mahama’s first year in office, marking what they describe as a reset of a sector that had accumulated years of unpaid obligations. The Finance Ministry added that new budget allocations, revised power purchase agreements and improved coordination with upstream gas producers are intended to prevent a return of arrears and boost local gas output. The government says the settlement closes a chapter of chronic energy-sector debt, strengthens Ghana’s credibility with international partners, and supports more reliable electricity supply as the economy recovers.
