Government clears $1.47bn energy debt, restores $500m World Bank guarantee

The Government of Ghana says it has successfully resolved the long-standing energy sector debt crisis and fully restored the World Bank Partial Risk Guarantee within the first year of President John Dramani Mahama’s administration.

In a statement issued on Monday, 12 January 2026, the Ministry of Finance said the intervention has removed one of the gravest risks to Ghana’s financial stability and repaired the country’s standing with international partners.

According to the ministry, when President Mahama assumed office in January 2025, the energy sector was under severe strain due to years of non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field. This situation had resulted in the complete depletion of the $500 million World Bank Partial Risk Guarantee under the previous administration.

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The guarantee, established in 2015 under an earlier NDC government, was a key instrument that facilitated nearly $8 billion in private sector investment through the Sankofa Gas Project. It was designed to protect ENI and Vitol against payment defaults.

The ministry disclosed that by 31 December 2025, government had fully repaid $597.15 million, including interest, drawn on the World Bank guarantee, restoring the facility in full.

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“This achievement reaffirms Ghana’s credibility as a reliable partner on the global stage,” the statement noted.

Government also settled all outstanding gas invoices owed to ENI and Vitol between January and December 2025, amounting to about $480 million, and has made adequate budgetary provisions to sustain timely payments going forward.

As part of wider reforms, all Independent Power Producer agreements were renegotiated, while legacy IPP debts were cleared to stabilise the power sector.

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Altogether, the Ministry of Finance said approximately $1.470 billion was paid in the 2025 fiscal year to rescue and restore Ghana’s energy sector.

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Beyond clearing inherited arrears, government said it has remained largely current on all IPP invoices through the disciplined implementation of the Cash Waterfall Mechanism and remains committed to improving payment performance across the sector.