The Mahama administration has paid a total of US$1.470 billion to clear legacy energy sector debts and restore Ghana’s World Bank guarantee within its first year in office, Finance Minister Dr Cassiel Ato Forson has announced.
In a Facebook post, Dr Forson said the decisive intervention resolved a long-standing energy sector crisis that had posed one of the most serious threats to Ghana’s financial stability. When President John Dramani Mahama assumed office in January 2025, the sector was near collapse after years of non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field, resulting in the complete exhaustion of a US$500 million World Bank Partial Risk Guarantee (PRG).
The PRG, established in 2015, underpinned nearly US$8 billion in private investment through the Sankofa Gas Project and guaranteed payments to partners ENI and Vitol. Its depletion, Dr Forson noted, damaged Ghana’s international credibility.
As of 31 December 2025, government had fully repaid US$597.15 million, including interest, drawn on the World Bank facility, restoring the guarantee in full. Between January and December 2025, outstanding gas invoices of about US$480 million owed to ENI and Vitol were also settled, ensuring Ghana is current on its obligations.
The Finance Minister said adequate budgetary provisions have been secured to sustain timely payments, while engagements with Tullow Oil and Jubilee Field partners have produced a roadmap to guarantee full payment for gas off-taken. Increased gas production has already followed, supporting reliable electricity generation and reducing dependence on expensive liquid fuels.
As part of a broader sector reset, the Mahama administration renegotiated all Independent Power Producer (IPP) agreements to secure better value for money. In 2025 alone, government paid about US$393 million in legacy IPP debts, including major payments to Karpowership, Cenpower, Sunon Asogli and others.
Dr Forson said disciplined implementation of the Cash Waterfall Mechanism has kept government largely current on IPP invoices and signalled that the era of uncontrolled energy debt accumulation is over, restoring investor confidence and long-term stability.