- President John Mahama announced Ghana has saved $250 million after renegotiating power purchase agreements with nine independent power producers.
- The government also restructured $1.1 billion in legacy debt and tightened revenue controls at the Electricity Company of Ghana.
President John Mahama has announced that the Government of Ghana secured immediate savings of $250 million after renegotiating power purchase agreements with nine independent power producers. He said the move formed part of broader efforts to reduce the high cost of electricity and stabilise the power sector.
In addition, the government restructured $1.1 billion in legacy debt. The revised repayment plan will run between 2026 and 2028, easing short-term fiscal pressure while restoring financial discipline in the sector.
Mahama told Parliament that Cabinet had approved the revised agreements. He added that the government would submit the agreements to Parliament for ratification in line with constitutional requirements.
Furthermore, the President stated that authorities have strengthened the cash waterfall mechanism. This reform improves revenue allocation across the power value chain. Officials have also operationalised the Electricity Company of Ghana single holding accounts. The Ministry of Energy and Green Transition and the Public Utilities Regulatory Commission jointly oversee the framework.
According to Mahama, the reforms have reduced revenue leakages. As a result, ECG can better meet its payment obligations. The utility can now manage settlements with generators and other market participants more effectively.
Mahama also revealed that Cabinet approved the multiple lease method for concessions in distribution utilities. He argued that private sector participation, especially in billing and revenue collection, offers the most effective solution to persistent inefficiencies.
He expressed concern over the Electricity Company of Ghana’s continued high power losses. Reports indicate that approximately 25 per cent of generated electricity is lost through technical and commercial inefficiencies.
The government intends to deepen private sector involvement to reduce losses, strengthen operational efficiency, and restore financial sustainability in Ghana’s electricity sector.