Independent Power Producers (IPPs) in Ghana have confirmed receiving a substantial portion of long-outstanding legacy arrears from the government, describing the payments as a major boost to confidence and stability in the country’s energy sector.
In a statement issued in Accra on January 12, 2026, the IPPs commended the government, through the Ministry of Finance and the Ministry of Energy and Green Transition, for what they called the successful settlement of arrears owed to power generation companies.
According to the IPPs, the payments—many of which were made in 2025—mark a turning point for an energy sector that has struggled for years under the weight of unpaid obligations.
“The clearance of these long-outstanding obligations… represents a major milestone in restoring financial stability and operational confidence across the power sector,” the statement said.
They noted that the development reflects “decisive leadership, disciplined fiscal management, and a clear commitment by Government to resolving inherited structural challenges that have constrained the sector for several years.”
The IPPs also highlighted the role of the Ministry of Finance in mobilising resources to settle the debts, while praising the Ministry of Energy and Green Transition for enforcing reforms such as the Cash Waterfall Mechanism, which has improved payment performance 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 stated, adding that investor confidence in the power market has been “meaningfully restored.”
The confirmation by the IPPs follows recent disclosures by the Ministry of Finance that government paid about US$1.47 billion in 2025 to rescue and stabilise the energy sector.
This included the settlement of gas supply arrears, the repayment of amounts drawn on the World Bank Partial Risk Guarantee for the Sankofa Gas Project, and the payment of nearly US$393 million in legacy debts owed to Independent Power Producers.
The Ministry has said these payments were part of a broader strategy to reset the energy sector, prevent further debt accumulation, and ensure reliable power supply nationwide.
Reaffirming their support, the IPPs pledged continued cooperation with government to sustain electricity generation and support ongoing reforms.
“The IPGs reaffirm our unwavering commitment to Ghana’s energy security, economic transformation, and industrial development,” the statement said.
They expressed confidence that the collaboration between government and power producers will continue to drive “energy sustainability, financial discipline, and shared prosperity for the people of Ghana.”
Below is a copy of the statement
Source: Starrfm.com.gh
