The Finance Ministry has announced that the government has settled a total of US$1.47 billion to revitalise the energy sector.
The Ministry noted that this payment forms part of the efforts to resolve the debilitating debt plaguing the energy sector.
According to the ministry’s statement issued on Monday, January 12, 2026, this move aims to restore financial stability and international confidence.
It further explained that when President John Dramani Mahama assumed office in January 2025, the sector was on the verge of collapse due to prolonged non-payment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field.
The Ministry said the situation led to the complete depletion of the US$500 million World Bank Partial Risk Guarantee (PRG) under the previous administration.
The PRG, established in 2015, guaranteed payments to ENI and Vitol, enabling nearly $8 billion in private sector investment through the Sankofa Gas Project.
The Ministry stated that the government has now fully repaid US$597.15 million, including interest, drawn on the World Bank guarantee, restoring the facility in full and reaffirming Ghana’s credibility with international partners.
It said the government had also settled all outstanding gas invoices owed to ENI and Vitol, amounting to approximately US$480 million, ensuring Ghana is fully up to date on its obligations to the Sankofa partners.
Additionally, the government paid about US$393 million in legacy debts to Independent Power Producers (IPPs) in 2025 alone, following the successful renegotiation of all IPP agreements to secure better value for money.
Payments made to IPPs included:
Karpowership Ghana – US$120 million
Cenpower Generation – US$59.4 million
Sunon Asogli – US$54 million
Early Power – US$42 million
Twin City Energy (Amandi) – US$38 million
AKSA Energy – US$30 million
Cenit Energy – US$30 million
BXC Company – US$10.56 million
Meinergy Technology – US$8.82 million
Meanwhile, the government has engaged upstream partners, including Tullow Oil and Jubilee Field partners, to agree on a roadmap that ensures full payment for gas supplied, supports reliable electricity generation, and boosts industrial growth.
Gas production, the minister noted, has already been achieved through these engagements, aimed at reducing reliance on expensive liquid fuels.
By: Rainbowradioonline.com/Ghana
