Gov’t Pays $393M to Power Producers (Energy Sector Stability, Debt Overhang Addressed)
The Ministry of Finance has revealed that the Mahama administration paid about US$393 million in overdue legacy debts to Independent Power Producers (IPPs) in 2025. This was part of a larger US$1.47 billion effort to clear inherited debts, restore investor confidence, and stabilize Ghana’s energy sector. A press release from January 12, 2026, said this.
The Ministry said that the payments were made to important power producers who had been behind on their bills for a long time, which was causing financial problems in the energy sector. Some of the beneficiaries were Karpowership Ghana Limited, which got $120 million, Cenpower Generation Company, which got $59.44 million, and Sunon Asogli Power, which got $54 million. The Ministry said that “these payments further anchored the gains made in restoring stability to the sector,” especially by making power producers more liquid and making sure that power supply was more reliable.
The Ministry also said that the government has renegotiated all of its IPP power purchase agreements to “secure improved value for money for the Ghanaian people.” This will fix problems with high costs and lower the government’s long-term financial risk. It also said that the Cash Waterfall Mechanism is now stronger, which will help keep revenue flows clear in the energy value chain and stop the re-accumulation of debt. The Ministry said that “the era of uncontrolled energy sector debt accumulation is over,” which shows a change in policy direction. It also reaffirmed the government’s commitment to better payment performance, better sector governance, and more domestic gas production as a way to lower overall energy costs and reliance on expensive liquid fuels.
