Ghanaians are expected to continue enjoying stable electricity supply after the government cleared major energy-sector arrears, easing long-standing financial pressures on the sector.
The payments include the repayment of the previously depleted $500 million World Bank Partial Risk Guarantee for natural gas supplies, with interest, leading to the full reinstatement of the facility that underwrites gas deliveries from the Sankofa Field.
This has restored critical risk cover against payment shortfalls and strengthened confidence among international partners.
Between January and February last year, the government settled outstanding gas invoices owed to ENI and Vitol for power generation, bringing Ghana fully up to date on its obligations to Sankofa partners. In addition, $597.15 million, inclusive of interest, was repaid to cover funds drawn under the World Bank guarantee.
Beyond clearing inherited arrears, authorities say the government has remained largely current on Independent Power Producer (IPP) invoices for 2025, supported by the disciplined application of the Cash Waterfall Mechanism by the Ministry of Energy and Green Transition.
Sources at the Ministry of Finance indicate that the Finance Minister is keen to clear all remaining energy-sector debts before the end of the year.
When President John Dramani Mahama assumed office, the energy sector was under severe strain due to years of non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field, a situation that had completely exhausted the World Bank guarantee and undermined Ghana’s credibility.
The guarantee, first established in 2015, had been a key instrument in mobilising billions of dollars in private investment into the sector.
Government sources say the recent settlements were achieved through coordinated policy measures and prudent financial management, with adequate budgetary provisions now in place to ensure timely payments going forward.
Engagements with upstream partners, including Jubilee Field stakeholders, have also resulted in a roadmap for full payment of gas supplies and increased domestic gas production to support nationwide power generation and industrial growth.
As part of a broader sector reset, the administration has renegotiated power purchase agreements to secure better value for money, while assuring stakeholders that tighter controls are now in place.
Officials insist the latest interventions mark a turning point, assuring the public and investors that the era of uncontrolled energy-sector debt accumulation has come to an end.
