The Government of Ghana paid about $1.47 billion in 2025 to clear energy sector arrears, restore a key World Bank guarantee, and stabilize electricity generation, Finance Minister Cassiel Ato Forson said Monday.

The payments came within the first year of President John Dramani Mahama taking office in January 2025, after years of non-payment for gas supplied to power plants strained public finances and disrupted investor protections.

The energy backlog had fully depleted a $500 million Partial Risk Guarantee provided by the World Bank, according to the ministry of finance.

Government records show $597.15 million, including interest, was repaid by Dec. 31, 2025 to replenish the guarantee, which underpins private investment linked to the Sankofa Gas Project.

The facility was set up in 2015 to backstop payments to project partners ENI and Vitol.

Separately, Ghana settled about $480 million in outstanding gas invoices to ENI and Vitol for electricity generation between January and December 2025, bringing accounts current.

The finance ministry said budget provisions are in place to maintain timely payments going forward.

Upstream gas producers agree on payment roadmap

Officials reached a payment roadmap with partners at the Jubilee Field, aimed at securing gas supply for power generation, supporting industrial activity, and reducing reliance on liquid fuels. The ministry reported early gains in gas output following the talks.

As part of a broader reset, the administration renegotiated Independent Power Producer contracts and paid about $393 million in legacy IPP debts during 2025.

Beneficiaries included Karpowership Ghana Co. Ltd, Cenpower, Twin City Energy, Early Power, BXC, Meinergy, Sunon Asogli, AKSA Energy, and Cenit Energy.

The ministry said the combined actions have restored sector stability and reinforced Ghana’s credibility with lenders and investors.