Ghana Clears $1.47B Energy Sector Debt, Restores World Bank Guarantee

Ghana has paid a total of US$1.47 billion in 2025 to clear longstanding debts in its energy sector, restoring the World Bank Partial Risk Guarantee, the Ministry of Finance said. Finance Minister Cassiel Ato Forson reported that US$597.15 million, including interest, was repaid to revive the guarantee, which is crucial for investor confidence.

The government also settled US$480 million in outstanding gas supply invoices owed to ENI and Vitol for electricity generation from the Offshore Cape Three Points (OCTP) field. In addition, around US$393 million was paid to independent power producers (IPPs), stabilizing the sector further.

Minister Forson highlighted that when President John Dramani Mahama assumed office in January 2025, the energy sector was fragile due to persistent non-payment, which had fully depleted the World Bank guarantee. He assured the public and investors that the era of uncontrolled energy sector debt accumulation is over.

The government has also maintained current payments on most IPP invoices in 2025, using the disciplined Cash Waterfall Mechanism implemented by the Ministry of Energy.

Source: Newstimehub