Government Settles US$1.47bn Energy Sector Arrears, Restores World Bank Guarantee in First Year — Finance Ministry

The government has paid a total of US$1.47 billion within its first year in office to clear legacy debts in the energy sector and reinstate Ghana’s World Bank Partial Risk Guarantee, according to the Ministry of Finance.

In a statement, the ministry said the payments form part of broader efforts to stabilise the energy sector, improve liquidity for power sector institutions, and rebuild confidence among investors and development partners.

The settlement of the outstanding obligations, the ministry explained, has enabled the restoration of the World Bank Guarantee, a critical instrument that underpins power purchase agreements and reduces financial risks for independent power producers.

Officials noted that the move is aimed at addressing long-standing challenges in the energy value chain, including payment arrears that had strained relations with service providers and threatened reliable power supply.

The Finance Ministry stressed that clearing the debts is already contributing to improved sector performance and fiscal discipline, while laying the foundation for sustainable energy sector reforms.

It added that government remains committed to ensuring transparency, efficiency and long-term financial viability in the energy sector as part of its broader economic recovery agenda.