Independent Power Generators in Ghana have lauded the government for settling a substantial portion of arrears owed to power producers, calling the move a critical step toward stabilizing the country’s energy sector.
Officials say the administration has paid a total of $1.47 billion in its first year in office to clear longstanding debts and restore the World Bank’s Partial Risk Guarantee, a facility that had been strained by years of missed payments. The Ministry of Finance reported that by December 31, 2025, the government had fully repaid $597.15 million, including interest, drawn on the guarantee. The repayment, the ministry said, “has fully restored the facility and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage.”
In a statement, the Independent Power Generators praised both the Ministry of Finance and the Ministry of Energy and Green Transition for ensuring the timely settlement of arrears.
“The clearance of these long-outstanding obligations represents a major milestone in restoring financial stability and operational confidence across the power sector,” the group said.
The IPGs noted that payments made in 2025 reflected “decisive leadership, disciplined fiscal management, and a clear commitment by government to resolving inherited structural challenges.”
The group also highlighted the role of the Ministry of Finance in mobilizing resources and the Ministry of Energy and Green Transition in implementing mechanisms such as the Cash Waterfall, which has improved payment performance to service providers. “These actions have sent a powerful signal to both domestic and international investors that Ghana is firmly committed to honoring its contractual obligations,” the statement added.
According to the IPGs, the settlement has helped rebuild investor confidence in the country’s energy market, positioning Ghana to attract new investment, technology and long-term partnerships.
“As a result, investor confidence in Ghana’s energy sector has been meaningfully restored, supporting economic transformation and industrial development,” the group said.
The IPGs reaffirmed their commitment to Ghana’s energy security and pledged continued collaboration with the government to maintain reliable power supply, promote efficiency and ensure value for money.
“We remain confident that the collaborative spirit demonstrated in the resolution of these legacy arrears will continue to guide the government-IPG partnership toward a future of energy sustainability, financial discipline, and shared prosperity for the people of Ghana,” the statement concluded
