Gov’t Settles $1.47B Energy Debts (World Bank Guarantee Restored, Sector Rebounds)
The Government of Ghana says that in its first year in office, it paid off long-standing debts in the energy sector and restored the World Bank’s Partial Risk Guarantee. This, they say, was a major turning point for the sector. On January 12, 2026, the Ministry of Finance said that the Mahama administration took over an energy sector that was about to collapse because of years of unpaid gas bills from the Offshore Cape Three Points (OCTP) field. This situation had completely used up the US$500 million World Bank guarantee, which was necessary to get almost US$8 billion in private investment through the Sankofa Gas Project.
The Ministry said that the facility’s lack of funds “represented a serious governance failure that undermined Ghana’s international credibility.” It also said that “As of December 31, 2025, the government has fully repaid US$597.15 million, including interest, drawn on the World Bank Guarantee,” which fully restored the facility and reaffirmed Ghana’s status as “a credible and reliable partner on the global stage.”
The government not only paid back the World Bank guarantee, but it also paid off gas bills owed to ENI and Vitol, which came to about US$480 million. It also made sure that there would be enough money in the budget to make sure that payments would be made on time in the future. The Ministry stressed that these steps not only stabilize the energy sector, but they also create the conditions for more private investment and a more reliable power supply across the country.
