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| Dr. Cassiel Ato Forson |
Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has announced that the Mahama administration has paid a total of US$1.47 billion in 2025 to clear inherited energy sector debts and restore the country’s credibility with international partners.
In a press release issued by the Ministry of Finance, Dr. Forson described the development as one of the most decisive financial interventions in Ghana’s recent history, aimed at rescuing a sector that had been “pushed to the brink” by years of unpaid gas and power obligations.
According to the statement, when President John Dramani Mahama took office in January 2025, Ghana’s energy sector was struggling under massive arrears, including unpaid gas bills to ENI and Vitol under the Offshore Cape Three Points (OCTP) Sankofa Gas Project.
As a result of these defaults, the World Bank Partial Risk Guarantee (PRG) — a US$500 million facility established in 2015 to backstop payments to the project partners — had been completely exhausted.
Dr. Forson disclosed that as of 31 December 2025, government had fully repaid US$597.15 million, including interest, to the World Bank, thereby restoring the PRG in full.
“This achievement reaffirms Ghana’s standing as a credible and reliable partner on the global stage,” the Finance Minister stated.
US$480 Million Paid to ENI and Vitol
Between January and December 2025, government also cleared all outstanding gas invoices owed to ENI and Vitol, amounting to about US$480 million. This has ensured that Ghana is now fully current on its gas payment obligations to the Sankofa partners.
Dr. Forson noted that adequate budgetary provisions have been secured to prevent a reoccurrence of arrears.
IPP Debts Settled and Contracts Renegotiated
As part of the broader energy sector reset, government renegotiated all Independent Power Producer (IPP) agreements to secure better value for money.
In 2025 alone, approximately US$393 million was paid to clear legacy IPP debts. The breakdown includes:
Karpowership Ghana – US$120 million
Cenpower – US$59.4 million
Twin City Energy (Amandi) – US$38 million
Early Power – US$42 million
BXC Company – US$10.56 million
Meinergy – US$8.82 million
Sunon Asogli – US$54 million
AKSA Energy – US$30 million
Cenit Energy – US$30 million
Engagements With Tullow and Jubilee Partners
The Finance Minister also revealed that government has held constructive talks with Tullow Oil and Jubilee Field partners, agreeing on a roadmap to ensure full payment for all gas off-taken.
These engagements have already resulted in increased gas production, helping to boost reliable power generation while reducing Ghana’s dependence on expensive liquid fuels.
Dr. Forson assured the public, industry players and international partners that the era of uncontrolled energy sector debt accumulation is over, adding that the Ministry of Energy is now strictly enforcing the Cash Waterfall Mechanism to remain current on IPP invoices.
“The Mahama administration is firmly committed to sustaining discipline, improving payment performance, and building a stable energy sector that supports national development,” the statement concluded.
