Independent Power Producers (IPPs) in Ghana have confirmed receiving a substantial portion of long-standing legacy debts owed them by the state, describing the development as a major boost to confidence in the country’s energy sector.
This comes after the Ministry of Finance announced that government has paid approximately US$1.47 billion in 2025 to stabilise Ghana’s energy sector, clear inherited debts, and fully restore the depleted World Bank Partial Risk Guarantee (PRG).
In a statement issued after the announcement on Monday, January 12, the IPPs commended the government, through the Ministries of Finance and Energy and Green Transition, for settling part of the arrears that had accumulated over several years and strained power generation companies.
According to the IPPs, the payments—made largely in 2025—mark “a major milestone in restoring financial stability and operational confidence across the power sector,” noting that the move reflects improved fiscal discipline and a commitment to resolving inherited sector challenges.
They specifically acknowledged the Ministry of Finance for mobilising funds to clear the debts and the Ministry of Energy and Green Transition for enforcing reforms such as the Cash Waterfall Mechanism, which has improved payment flows to service providers.
“These actions have sent a powerful signal to both domestic and international investors that Ghana is firmly committed to honouring its contractual obligations,” the IPPs said, adding that investor confidence in the power market has been “meaningfully restored.”
The development follows recent assurances by the Ministry of Energy and Green Transition that government would prioritise clearing legacy energy sector debts as part of broader reforms aimed at stabilising power supply, restoring credibility, and attracting new investment into the sector.
The IPPs reaffirmed their commitment to Ghana’s energy security and pledged continued cooperation with government to sustain reliable power supply, support ongoing reforms, and promote transparency and value for money across the energy value chain.
Find below a copy of the statement
