In the News:
- Ghana pays $1.47 billion in energy sector debt.
- The repayment includes funds drawn under the World Bank Partial Risk Guarantee.
- Outstanding gas and power producer arrears were also settled.
The government of Ghana says it has paid $1.47 billion to settle longstanding energy sector debts, including funds from the World Bank’s Partial Risk Guarantee.
In a statement released on Sunday by the Ministry of Finance, the government said it inherited an energy sector under severe strain after years of unpaid gas from the Offshore Cape Three Points (OCTP) field, which exhausted the $500 million World Bank PRG.
The guarantee, established in 2015, was designed to support the Sankofa Gas Project. According to the World Bank, the structure helped unlock nearly $8 billion in private-sector investment into Ghana’s energy sector.
The Ministry said total payments made across the sector in 2025 amounted to $1.47 billion, covering gas suppliers, power producers, and obligations under international guarantees.
Repayment restores World Bank facility
In addition, the Ministry of Finance said that as of December 31, 2025, the government had repaid $597.15 million, including interest, drawn under the World Bank guarantee.
According to the statement, the exhaustion of the guarantee under the previous administration raised concerns about Ghana’s payment framework for energy projects.
“As at 31 December 2025, government has fully repaid US$597.15 million, inclusive of interest, drawn on the World Bank Guarantee,” the Ministry said.
It added that restoring the PRG re-establishes the contractual backstop supporting gas supply from the Sankofa field.
Meanwhile, the government also settled approximately $480 million in outstanding gas invoices owed to ENI and Vitol.
It said budgetary provisions have been made to ensure timely payments going forward.
Legacy debts across power value chain
Beyond gas obligations, the government said it cleared arrears across the power value chain accumulated over several years.
These liabilities were identified as a major risk to Ghana’s financial stability when the administration assumed office in January 2025.
Between January and December 2025, payments to Independent Power Producers (IPPs) totalled about $393 million, based on figures provided by the Ministry of Finance.
Karpower Ghana Company Ltd received $120 million, the highest among the IPPs. Cenpower followed with $59.44 million, while Sunon Asogli received $54 million.
Other payments went to Early Power Ltd ($42 million), Twin City Energy (Amandi) ($37.98 million), AKSA Energy Ltd and Cenit Energy Ltd ($30 million each), BXC Company Ltd ($10.56 million), and Meinergy Technology ($8.82 million).
Contract reviews and upstream engagements
The government said it has renegotiated all IPP agreements as part of a broader review of the energy sector.
While details were not disclosed, the Ministry said the renegotiations were aimed at reducing long-term fiscal exposure.
The government also confirmed engagements with Tullow Oil and Jubilee Field partners. These talks resulted in a roadmap to ensure full payment for gas supplied to the power sector.
According to the Ministry, the engagements have contributed to increased gas production.
Separately, OCTP partners have continued capacity upgrades. These include expansions to gas processing infrastructure to support domestic supply and reduce reliance on liquid fuels.
The Ministry of Finance said that beyond clearing inherited arrears, the government is focused on improving payment performance across all IPP obligations.
