By: Sarah Baafi
The Ministry of Finance has announced that the Mahama administration disbursed about US$393 million in 2025 to settle outstanding legacy debts owed to Independent Power Producers (IPPs), marking a significant step in the government’s ongoing energy sector reforms.
According to a press statement issued on January 12, 2026, the payments were part of a broader US$1.47 billion intervention designed to clear inherited arrears, rebuild investor confidence, and guarantee stable electricity supply across the country.
Key beneficiaries of the settlement included Karpowership Ghana Limited, which received US$120 million, Cenpower Generation Company with US$59.44 million, and Sunon Asogli Power, which was paid US$54 million, among several others.
The Ministry noted that the payments have “consolidated the gains achieved in restoring stability to the energy sector,” helping to place the industry on a more sustainable footing.
In addition, the government disclosed that all IPP contracts have been successfully renegotiated to ensure better value for money for Ghanaians, alongside the full implementation of the Cash Waterfall Mechanism to prevent the recurrence of arrears.
Reaffirming its commitment to reform, the Ministry declared that “the era of uncontrolled energy sector debt accumulation is over,” stressing that efforts are ongoing to improve payment discipline across IPP obligations and expand domestic gas production to cut dependence on costly liquid fuels.
