• Ghana pays $1.47 billion to clear energy arrears, restore World Bank guarantee
• Payments restore $500 million Sankofa guarantee, securing nearly $8 billion investment
• Arrears to ENI, Vitol and IPPs cleared to stabilise power sector

The Ghanaian government has paid $1.47 billion to clear long-standing arrears, restore a key World Bank guarantee, and rebuild investor credibility in the energy sector, Finance Minister Cassiel Ato Forson confirmed on Monday.

Last year, several sources estimated the country's debt at more than $3 billion.

MAHAMA ADMINISTRATION PAYS US$1.470 BILLION TO CLEAR ENERGY SECTOR DEBT AND RESTORE WORLD BANK GUARANTEE WITHIN FIRST YEAR

1.The Government of Ghana, under the leadership of President John Dramani Mahama, has decisively resolved the crippling energy sector debt that posed one of… pic.twitter.com/HTn8q8rHPU

— Cassiel Ato Forson (PhD) (@Cassielforson) January 12, 2026

When the new president took office in January 2025, he inherited an energy sector weakened by chronic payment delays, particularly for gas used in electricity production. This situation led to the total depletion of the World Bank's $500 million partial risk guarantee, which was originally established to secure payments for the Sankofa gas project operated by ENI and Vitol. Its disappearance directly threatened nearly $8 billion in private investment and affected Ghana's financial credibility. The president promised at the time to significantly reduce this debt.

The Ministry of Finance first repaid $597.15 million, including interest, covering the amounts drawn from the World Bank guarantee. This full reimbursement allowed for the complete restoration of the facility, reactivating a safety net considered central for the country's international partners.

In tandem, the state settled approximately $480 million in arrears owed to ENI and Vitol for gas deliveries from the Offshore Cape Three Points field for power generation. These payments regularized Ghana's standing with the Sankofa project partners and secured the long-term gas supply for the national power fleet.

The third part of the plan addressed independent power producers (IPPs). Approximately $393 million in legacy debts were cleared, including $120 million paid to Karpower, $59.4 million to Cenpower, and $54 million to Sunon Asogli, according to data provided by the Ministry of Finance. These settlements are part of a broader framework for renegotiating IPP contracts with the stated goal of improving cost-effectiveness for the state.

"The successful settlement of a substantial portion of the legacy arrears owed to power generation companies represents a major milestone in restoring financial stability and operational confidence across the power sector," the association of independent power producers said.

For the government, this debt reduction aims to permanently stabilize the power sector, reduce dependence on expensive liquid fuels, and create conditions for an increase in domestic gas production.

Olivier de Souza