ACCRA, Jan 13 – Ghana has paid $1.47 billion to clear long standing debts in its energy sector, a move the finance ministry said will help restore financial stability and reduce power outages across the country.
The West African nation’s power sector has been weighed down by unpaid obligations to gas suppliers and independent power producers, contributing to recurring electricity disruptions. President John Dramani Mahama had pledged last year to reduce more than $2.5 billion owed to energy companies.
According to the finance ministry, over $597 million was repaid to the World Bank, fully restoring a partial risk guarantee that supports gas supplies from the Offshore Cape Three Points field. The guarantee, created in 2015, was designed to protect nearly $8 billion in private investment but had been depleted in recent years, weakening Ghana’s standing with international partners.
The government also settled $480 million in outstanding gas invoices owed to Italy’s ENI and commodities trader Vitol under the Sankofa Gas Project, which supplies fuel for electricity generation. In addition, around $393 million was paid to independent power producers, including $120 million to Turkey’s Karpowership and $59.4 million to Cenpower Generation.
Independent power producers said the payments mark a turning point for the sector, restoring confidence and improving operational stability after years of financial strain.
The finance ministry said the government has renegotiated agreements with all independent power producers and is working with Tullow Oil and partners in the Jubilee oil field on a structured payment roadmap. Authorities are also seeking to boost domestic gas production and cut reliance on costly liquid fuels.
“The era of uncontrolled energy sector debt accumulation is over,” the ministry said, adding that stronger financial discipline will ensure timely settlement of future obligations.
