Gov’t pays $1.47bn to wipe out energy sector debt
The Government of Ghana has announced the successful clearance of major energy sector debts, marking a significant milestone in restoring confidence in the country’s power sector and international financial standing. According to a press release issued by the Ministry of Finance on Monday, the Mahama Administration paid a total of US$1.470 billion within its first year in office to settle legacy obligations and fully restore the World Bank Partial Risk Guarantee.
The settlement includes US$597.15 million repaid to the World Bank to reinstate the guarantee that underpins the Sankofa Gas Project, as well as approximately US$480 million paid to energy partners ENI and Vitol for outstanding gas supplies. Government officials say these payments have stabilized gas supply for power generation and eliminated a major risk to Ghana’s fiscal and energy security.
Finance Ministry sources noted that the restoration of the guarantee has reaffirmed Ghana’s credibility with international investors and development partners. The government has also engaged other upstream partners, including Tullow Oil and Jubilee Field stakeholders, to ensure sustainable payment structures going forward, with the broader goal of supporting a reliable electricity supply and accelerating industrial growth.
Read the full statement below:
About The Author
