- Ghana paid $1.47 billion in 2025 to clear legacy energy sector debts and restore a depleted World Bank guarantee.
- The payments stabilised the power sector’s finances and improved credibility with investors and partners.
Ghana’s government paid $1.47 billion in 2025 to clear legacy energy sector debts, the Finance Ministry said on Monday, January 12. The payments restored a depleted World Bank guarantee and settled arrears owed to power producers.
Ghana has struggled with severe unpaid energy debts that triggered frequent outages. President John Dramani Mahama pledged last year to cut the $2.5 billion owed to independent power producers and gas suppliers. “The era of uncontrolled energy sector debt accumulation is over,” the ministry said. It noted that disciplined financial management enabled the repayments and would support timely future obligations.
The ministry stated that the government had paid more than $597 million to the World Bank. The payment fully restored a partial risk guarantee for gas supplies from the Offshore Cape Three Points field. Meanwhile, the guarantee, created in 2015, protected nearly $8 billion in private energy investment. Its depletion had weakened Ghana’s credibility with international partners.
The government also paid $480 million to ENI and Vitol to clear outstanding gas invoices tied to the Sankofa Gas Project.
Additionally, the government settled approximately $393 million in legacy debts owed to independent power producers. The breakdown included $120 million to Turkey’s Karpowership and $59.4 million to Cenpower Generation.
Independent power producers stated in a separate announcement that the debt clearance marked a significant step in restoring financial stability and operational confidence in the power sector. The ministry noted that the government has renegotiated all agreements with independent power producers and is collaborating with Tullow Oil and Jubilee Field partners on a payment roadmap.