Keypoints:
- World Bank energy guarantee fully restored
- $480m gas arrears to Sankofa partners cleared
- $1.47bn paid in 2025 to stabilise power sector
THE Government of Ghana says it has decisively ended the country’s long-running energy debt crisis after settling inherited liabilities that once posed one of the gravest threats to national financial stability.
In a statement released by the Ministry of Finance, the administration of President John Dramani Mahama confirmed that it had fully restored the World Bank Partial Risk Guarantee (PRG) while also clearing outstanding gas and power-sector arrears accumulated over several years.
Crisis inherited at the start of 2025
When President Mahama assumed office in January 2025, Ghana’s energy sector was on the brink. Persistent non-payment for gas supplied to thermal power plants from the Offshore Cape Three Points (OCTP) block had exhausted the $500 million PRG provided by the World Bank.
‘When President Mahama assumed office in January 2025, the energy sector had been pushed to the brink by years of persistent non-payment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field. As a result, the World Bank Partial Risk Guarantee of $500m had been completely depleted under the previous administration,’ Finance Minister Cassiel Ato Forson said in a post on X.
The guarantee, established in 2015, was a cornerstone of Ghana’s energy financing framework. It helped unlock close to $8bn in private investment through the Sankofa Gas Project by guaranteeing payments to upstream partners ENI and Vitol in the event of shortfalls.
Its complete depletion before 2025 was widely viewed as a major governance failure that damaged Ghana’s credibility with international lenders and investors.
Guarantee restored, gas debts settled
The Ministry of Finance said government had, by December 31 2025, fully repaid $597.15 million drawn on the World Bank guarantee, including interest, restoring the facility in full.
Over the same period, government cleared all outstanding gas invoices owed to ENI and Vitol for electricity generation, paying approximately $480 million. Officials say Ghana is now fully current on its obligations to the Sankofa partners, with adequate budgetary provisions secured to sustain timely payments going forward.
Engagements with upstream producers
Beyond Sankofa, government has held structured engagements with Tullow Oil and partners in the Jubilee Field, agreeing on a roadmap to guarantee full payment for all gas off-taken.
The approach is intended to support reliable nationwide electricity generation while accelerating industrial growth. Officials say engagements with upstream partners have already resulted in increased gas production, guided by a national strategy to rapidly scale up domestic gas supply and reduce dependence on expensive liquid fuels.
IPP reforms and legacy debt payments
As part of a broader energy sector reset, the Mahama administration has renegotiated all Independent Power Producer (IPP) agreements to secure improved value for money for the Ghanaian public.
In 2025 alone, government paid about $393 million in legacy IPP debts. Through stricter enforcement of the Cash Waterfall Mechanism by the Ministry of Energy, authorities say they have remained largely current on IPP invoices throughout the year and are committed to further improving payment performance.
‘Era of uncontrolled debt is over’
Altogether, the Ministry of Finance estimates that approximately $1.47bn was paid during the 2025 fiscal year to rescue and stabilise the energy sector.
Government has assured the public, industry stakeholders and international partners that the era of uncontrolled energy sector debt accumulation is over, signalling a renewed focus on fiscal discipline, payment transparency and long-term energy security.
