President John Dramani Mahama has revealed that his government has made progress in resolving Ghana’s long-standing power sector debt.
He stated that the government has restructured and begun clearing a $1.7 billion legacy obligation owed to Independent Power Producers (IPPS).
He explained that the debt overhang—denominated in dollars—posed a major challenge to the stability of the energy sector when his administration assumed office.
He noted that the government engaged the IPPs in negotiations and secured a reduction in the debt burden through agreed concessions.
“When we came into office, we had a debt overhang of about $1.7 billion owed to the independent power producers,” he said on Day Two of the Kwahu Business Forum on Saturday, April 4, 2026.
“Since Ghanaians were all taking haircuts from the debt restructuring, we told them they also must take haircuts… and they agreed… it amounted to about twenty per cent of what was owed,” he said.
He said a government-established structured repayment plan was subsequently agreed upon, including upfront payments and scheduled disbursements.
“If they signed on to it, we gave them an immediate down payment, and we gave them the dates for the subsequent payment,” he added.
He also assured Ghanaians that the government remains committed to meeting its current financial obligations to power producers.
“The best announcement is we are keeping up with their present-day bills… any bill they submit every month, we pay them for the electricity they produce,” he added.
By: Rainbowradioonline.com/Ghana
