The Ministry of Finance has announced that the government has taken decisive steps to resolve its long-standing energy sector debt, describing the development as a major milestone toward restoring financial stability and rebuilding international confidence.
In a statement issued on Monday, January 12, the Ministry revealed that as of December 31, 2025, the John Dramani Mahama administration had paid a total of US$1.47 billion to stabilise and reset the energy sector.
According to the statement, when President Mahama assumed office in January 2025, the energy sector was nearing collapse after years of unpaid gas supply bills from the Offshore Cape Three Points (OCTP) field. These arrears had resulted in the full exhaustion of the US$500 million World Bank Partial Risk Guarantee (PRG) under the previous administration.
The PRG, established in 2015, was a critical risk-mitigation instrument that facilitated nearly US$8 billion in private sector investment through the Sankofa Gas Project by guaranteeing payments to partners ENI and Vitol in the event of defaults.
The Ministry noted that the government has since fully repaid US$597.15 million, including interest, drawn on the World Bank guarantee, thereby restoring the facility in full and reinforcing Ghana’s credibility with international partners.
Between January and December 2025, the government also cleared all outstanding gas invoices owed to ENI and Vitol, amounting to about US$480 million, bringing Ghana completely up to date on its obligations to the Sankofa partners.
Additionally, the statement disclosed that the government paid approximately US$393 million in legacy debts to Independent Power Producers (IPPs) in 2025 alone, following the successful renegotiation of all IPP agreements to secure improved value for money.
The Ministry further indicated that engagements with upstream partners, including Tullow Oil and Jubilee Field partners, have resulted in an agreed roadmap to ensure full and timely payment for gas supplies, enhance reliable power generation, and support industrial growth.
It added that these engagements have already led to increased gas production, significantly reducing the country’s dependence on costly liquid fuels for power generation.
