Ghana Pays $1.47 Billion to Clear Energy Sector Debts and Restore World Bank Guarantee

Ghana has paid US$1.47 billion in 2025 to clear longstanding energy sector debts, including US$597 million to restore the World Bank Partial Risk Guarantee and US$480 million in gas supply arrears. The government also settled US$393 million owed to independent power producers and is maintaining current payments through the Cash Waterfall Mechanism to stabilize the sector.

Ghana has made significant progress in stabilizing its energy sector by paying a total of US$1.47 billion in 2025 to clear longstanding debts and restore the World Bank guarantee for the industry, according to a statement from the Ministry of Finance on Monday. Finance Minister Cassiel Ato Forson explained that the government fully repaid US$597.15 million, including interest, that had been drawn under the World Bank Partial Risk Guarantee, which had been completely exhausted in previous years. The repayment has effectively reinstated the guarantee, a crucial measure that strengthens investor confidence in Ghana’s power sector and signals the government’s commitment to fiscal responsibility.
Minister Forson said that when President John Dramani Mahama assumed office in January 2025, the energy sector was in a fragile state, weakened by years of delayed and inconsistent payments for gas supplied to the power sector, particularly from the Offshore Cape Three Points (OCTP) field. The depletion of the US$500 million World Bank Partial Risk Guarantee under the previous administration had left the sector vulnerable, raising concerns among international partners and investors about the reliability of energy supply and the financial stability of the industry.
In addition to restoring the World Bank guarantee, the government settled outstanding gas supply invoices totaling US$480 million owed to ENI and Vitol for electricity generation from the OCTP field. These payments addressed accumulated arrears that had threatened the continuous operation of power plants and had placed considerable strain on Ghana’s electricity supply chain. Minister Forson emphasized that the government is determined to ensure that such uncontrolled accumulation of energy sector debt will no longer occur, assuring the public, industry stakeholders, and international partners that decisive measures have been taken to prevent future crises.
The government also cleared approximately US$393 million in legacy debts owed to independent power producers (IPPs), further stabilizing the sector and reinforcing confidence in the government’s commitment to reliable energy supply. Beyond settling historical debts, the Ministry of Finance reported that current payments on most IPP invoices have been maintained throughout 2025 through the disciplined application of the Cash Waterfall Mechanism by the Ministry of Energy. This mechanism ensures that payments are transparent, prioritized, and made promptly, preventing the resurgence of arrears and strengthening operational continuity across the power sector.
According to the ministry, these efforts not only resolve inherited financial challenges but also lay the foundation for a more sustainable and resilient energy sector. By addressing both historical debts and current obligations, Ghana has demonstrated a clear commitment to fostering financial discipline, improving investor confidence, and supporting the country’s broader economic development. These measures are expected to enhance the reliability of electricity supply, encourage investment in energy infrastructure, and secure long-term growth for the sector.