Independent Power Generators (IPGs) in Ghana have commended the government for settling a significant portion of legacy arrears owed to power generation companies, describing the move as a major step towards stabilising the country’s energy sector.
The government says it has paid a total of US$1.47 billion within its first year in office to clear longstanding energy sector debts and restore the World Bank’s Partial Risk Guarantee, marking what it describes as a decisive turnaround for the sector.
“As at 31 December 2025, the government has fully repaid US$597.15 million, inclusive of interest, drawn on the World Bank Guarantee,” the Ministry stated, adding that the repayment has fully restored the facility and reaffirmed Ghana’s standing as “a credible and reliable partner on the global stage”.
In a statement, the IPGs praised the Ministry of Finance and the Ministry of Energy and Green Transition for ensuring the timely settlement of the arrears.
“The clearance of these long-outstanding obligations represents a major milestone in restoring financial stability and operational confidence across the power sector,” the IPGs said.
They noted that payments made in 2025 to independent power producers reflect “decisive leadership, disciplined fiscal management, and a clear commitment by government to resolving inherited structural challenges”.
The IPGs highlighted the strategic role of the Ministry of Finance in mobilising the required resources, as well as the Ministry of Energy and Green Transition, for 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 honouring its contractual obligations,” the statement added.
According to the IPGs, the settlement has helped rebuild investor confidence in the country’s energy market and positioned 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,” they said.
The IPGs reaffirmed their commitment to Ghana’s energy security and pledged to continue working with the government to maintain a reliable power supply, promote efficiency and ensure value for money across the sector.
“We remain confident that the collaborative spirit demonstrated in the resolution of these legacy arrears will continue to guide the government-IPG–IPG partnership towards a future of energy sustainability, financial discipline, and shared prosperity for the people of Ghana,” the statement concluded.
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