Mahama Administration Clears IPP and Gas Arrears, Boosts Power Reliability

The government has settled all outstanding gas and power sector arrears, paving the way for improved electricity reliability and sustainable industrial growth, the Ministry of Finance has revealed.

Between January and December 2025, the government cleared approximately US$480 million in outstanding gas invoices owed to ENI and Vitol, ensuring Ghana is fully up to date on its obligations to Sankofa Gas Project partners.

In addition, the Ministry disclosed that about US$393 million in legacy debts owed to Independent Power Producers (IPPs) were paid in 2025 following the successful renegotiation of all IPP agreements to secure better value for money.

Payments made to IPPs included:

Karpowership Ghana – US$120 million

Cenpower Generation – US$59.4 million

Sunon Asogli – US$54 million

Early Power – US$42 million

Twin City Energy (Amandi) – US$38 million

AKSA Energy – US$30 million

Cenit Energy – US$30 million

BXC Company – US$10.56 million

Meinergy Technology – US$8.82 million

The Ministry further noted that the government has engaged upstream partners, including Tullow Oil and Jubilee Field partners, to agree on a roadmap that guarantees full payment for gas supplied, supports reliable electricity generation, and drives industrial expansion.

These engagements have already resulted in increased gas production, reducing Ghana’s dependence on expensive liquid fuels and lowering power generation costs.

The Ministry assured industry stakeholders and the general public that sufficient budgetary provisions have been made to ensure timely payments going forward, emphasizing that “the era of uncontrolled energy sector debt accumulation is over.”