Finance Ministry Clears $393m Legacy Arrears to IPPs
The Ministry of Finance has announced that the Mahama administration settled roughly US$393 million in outstanding obligations to Independent Power Producers (IPPs) in 2025, as part of a comprehensive effort to stabilise Ghana’s power sector and rebuild investor trust.
In a statement released on January 12, 2026, the Ministry explained that the payments were part of a broader US$1.47 billion package designed to clear inherited debts, enhance cash flow within the electricity value chain, and guarantee dependable power supply across the country.
The Ministry indicated that major recipients of the disbursements included Karpowership Ghana Limited, which received US$120 million, Cenpower Generation Company, paid US$59.44 million, and Sunon Asogli Power, which received US$54 million, among several other IPPs.
“These disbursements helped consolidate the progress made towards restoring stability in the sector,” the statement said, adding that the initiative has eased financial pressure on power producers and supported consistent generation capacity.
It further disclosed that government has renegotiated all IPP contracts to “deliver better value for money for Ghanaians,” alongside the full application of the Cash Waterfall Mechanism to prevent the build-up of new arrears within the energy sector.
The Ministry reaffirmed that the administration remains focused on strengthening payment discipline across all IPP commitments, while boosting domestic gas supply to cut dependence on costlier liquid fuels.
“The period of unchecked accumulation of energy sector debt has come to an end,” the statement stressed, underscoring government’s commitment to achieving long-term financial sustainability in the power industry.
