When President John Dramani Mahama took office in January 2025, Ghana’s energy sector teetered on the edge of disaster. Years of unpaid bills for gas supplied from the Offshore Cape Three Points (OCTP) field had brought the sector to its knees, and the crucial $500 million World Bank Partial Risk Guarantee (PRG), once a bulwark for investor confidence, had been completely depleted.
The stakes were high. The PRG, established back in 2015, had been the foundation for nearly $8 billion in private investment, guaranteeing partners like ENI and Vitol that they would be paid even if Ghana defaulted. Without it, faith in Ghana’s energy landscape was crumbling, and the threat of blackouts and business closures loomed large.
But 2025 would prove to be a turning point. In a statement released on January 12, the Ministry of Finance revealed how the Mahama administration, acting with urgency and resolve, set out to rescue the sector. By the close of the year, the government had repaid a staggering $1.47 billion to reset the industry’s fortunes.
First, the government moved swiftly to restore Ghana’s credibility on the global stage: it repaid $597.15 million (including interest) drawn from the World Bank guarantee, fully replenishing the facility and signalling to international partners that Ghana meant business.
Next, it addressed the mountain of unpaid bills to key gas suppliers. By December 2025, all outstanding invoices to ENI and Vitol—amounting to roughly $480 million—had been settled in full. The government also tackled legacy debts to Independent Power Producers (IPPs), disbursing about $393 million after renegotiating contracts for better value.
Among the IPPs paid were:
* Karpowership Ghana: $120 million
* Cenpower Generation: $59.4 million
* Sunon Asogli: $54 million
* Early Power: $42 million
* Twin City Energy (Amandi): $38 million
* AKSA Energy: $30 million
* Cenit Energy: $30 million
* BXC Company: $10.56 million
* Meinergy Technology: $8.82 million
No stone was left unturned. The government also opened discussions with upstream partners like Tullow Oil and Jubilee Field partners, agreeing on a roadmap to ensure prompt payment for gas supplies and secure a stable electricity supply to power Ghana’s industries.
Already, these efforts have begun to bear fruit. Increased gas production is reducing the country’s dependence on costly liquid fuels, and the Ministry announced that the dark days of runaway energy sector debt are gone for good. With robust budgetary provisions in place, Ghana’s energy sector now stands on a foundation of timely payments, restored confidence, and renewed hope for the future.
Source: Apexnewsgh.com
