Gov’t Pays $1.47bn to Clear Energy Sector Arrears, Restore World Bank Guarantee
The Government of Ghana has announced that it has paid a total of US$1.47 billion within its first year in office to clear legacy energy sector liabilities and reinstate the World Bank’s Partial Risk Guarantee (PRG), describing the move as a major step towards stabilising the sector.
In a statement issued by the Ministry of Finance on Monday, January 12, 2026, the government said the Mahama administration assumed office at a time when the energy sector was close to collapse, largely due to prolonged non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field. This situation, the Ministry noted, resulted in the complete drawdown of the US$500 million World Bank PRG.
The PRG, which was established in 2015 under a previous National Democratic Congress (NDC) administration, played a key role in mobilising close to US$8 billion in private sector financing for the Sankofa Gas Project. Its depletion, according to the Ministry, “constituted a major governance lapse that severely damaged Ghana’s credibility with international partners.”
The statement disclosed that as of December 31, 2025, the government had fully repaid US$597.15 million, including interest, that had been drawn down under the World Bank guarantee. This repayment, the Ministry said, has fully reinstated the PRG and reinforced Ghana’s reputation as “a credible and dependable partner in the international financial system.”
In addition to restoring the guarantee, the government has also cleared outstanding gas payment arrears owed to ENI and Vitol, amounting to approximately US$480 million. The Ministry further indicated that budgetary arrangements have been put in place to ensure prompt settlement of future gas supply obligations.
According to the government, these interventions are expected to improve investor confidence, strengthen energy sector governance, and prevent a recurrence of the financial distress that previously plagued the sector.
