The Mahama administration has paid approximately $1.470 billion in 2025 to stabilise Ghana’s energy sector, clear inherited debts, and fully restore the depleted World Bank Partial Risk Guarantee (PRG), the Ministry of Finance has announced.
The Government said the decisive intervention has removed what it described as one of the “gravest risks to Ghana’s financial stability” and reaffirmed the country’s credibility with international partners.
When President John Dramani Mahama assumed office in January 2025, the energy sector was already in deep distress, largely due to years of non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field.
This situation had led to the complete depletion of the US$500 million World Bank Partial Risk Guarantee under the previous administration.
The PRG, established in 2015 under an earlier NDC government, was a key safeguard for the Sankofa Gas Project, which attracted nearly $8 billion in private sector investment. It was designed to guarantee payments to project partners, ENI and Vitol, in the event of shortfalls.
According to the Ministry of Finance in a statement, the exhaustion of the guarantee “represented a serious governance failure that undermined Ghana’s international credibility.”
As of December 31, 2025, the Government says it has fully repaid US$597.15 million, including interest, drawn on the World Bank Guarantee, thereby restoring the facility in full.
In addition, between January and December 2025, Government settled all outstanding gas invoices owed to ENI and Vitol for power generation, with payments amounting to about US$480 million.
This, authorities say, has ensured that Ghana is now fully up to date on its obligations to the Sankofa partners.
The Government has also secured budgetary provisions to sustain timely payments going forward and has held engagements with Tullow Oil and Jubilee Field partners to agree on a roadmap to guarantee full payment for all gas off-taken.
“These engagements have already resulted in increased gas production,” the statement noted, adding that the strategy is aimed at supporting reliable nationwide electricity generation while reducing reliance on expensive liquid fuels.
As part of what it describes as a broader energy sector reset, the Mahama administration has renegotiated Independent Power Producer (IPP) agreements to secure “improved value for money for the Ghanaian people.”
In 2025 alone, Government paid about US$393 million in legacy IPP debts, including payments to Karpowership, Sunon Asogli, Cenpower, AKSA Energy, and other power producers.
Altogether, the Ministry of Finance said the US$1.470 billion disbursed in 2025 reflects Government’s commitment to restoring stability and discipline in the energy sector.
“The Government of Ghana assures the general public, industry stakeholders, and international partners that the era of uncontrolled energy sector debt accumulation is over,” the statement added.
Source: Starrfm.com.gh
