The government’s recent payment of $393 million to Independent Power Producers (IPPs) has strengthened confidence in Ghana’s energy sector, the CEO of the Independent Power Generators (IPGs), Dr Elikpem Apetorgbor, has said.

The government cleared outstanding energy-sector debts totalling $1.470 billion in the 2025 fiscal year, effectively rescuing the sector and ridding it of crippling debt.

The payments include repaying the depleted $500 million World Bank Guarantee for natural gas supplies, with interest, which has ensured the reinstatement of the vital World Bank risk guarantee against shortfalls in payment for natural gas supplies from the Sankofa Field.

The payments — all made between January and February last year — total $480 million and cover all outstanding gas invoices owed to ENI and Vitol for electricity generation.

This makes the country very current on its obligations to Sankofa partners regarding natural gas supply for power generation.

The John Dramani Mahama-led government also cleared all inherited debts owed to Independent Power Producers (IPPs), amounting to $393 million, further anchoring the gains made in restoring stability to the power sector.

The government also fully repaid $597.15 million, including interest, of the drawn-down World Bank Guarantee.

Speaking on JoyNews Desk on Monday, January 12, 2026, Dr Apetorgbor noted that while the sector is not yet free from legacy debt, the payment provides “much-needed relief” and demonstrates government commitment to addressing long-standing financial obligations.

“We are not yet out of the legacy debt situation, but this intervention by the government has given the sector confidence,” he said, stressing that timely payments are critical for maintaining power plants, procuring fuel, and ensuring a reliable electricity supply across the country.

The CEO explained that the $393 million is part of a broader, ongoing process to clear arrears owed to IPPs. He linked the payment to wider reforms in the energy sector aimed at improving transparency, reducing political interference, and fostering collaboration between government and private power providers.

“These reforms, together with better cooperation, are gradually stabilising the sector and making it more attractive to investors, both local and foreign,” Dr Apetorgbor said, noting that reliable power supply underpins Ghana’s economic growth.