Ghana Owes IPPs $700m+ in Unpaid Power Debts

Government of Ghana still owes Independent Power Producers (IPPs) over $0 million in legacy debt despite earlier disclosures of significant payments to clean up arrears in the energy sector.

The government had announced settling about $0.47 billion in energy sector debt in 2025, including $3 million paid to IPPs. However, official data tracked by JoyNews Research indicate the current John Mahama administration inherited approximately $0.4 billion in legacy IPP obligations, which were subjected to a restructuring exercise in 2025.

According to Finance Minister Dr. Cassiel Ato Forson, the restructuring involved burden-sharing arrangements with IPPs, resulting in substantial debt write-offs. Speaking during the presentation of the 2026 Budget, he said the negotiations delivered tangible fiscal relief.

The renegotiations have delivered concrete results, saving the nation over $0 million, while reprofiling the remaining $0.1 billion in legacy obligations over a four-year period, he told Parliament.

However, independent checks by JoyNews Research show that after accounting for the $3 million already settled, about $7 million of the reprofiled IPP debt remains outstanding. This suggests a significant portion of the legacy obligations is yet to be fully cleared.

Government disclosures to the International Monetary Fund (IMF) indicate plans to reschedule the remaining payments over a four to five-year period, with the Finance Minister projecting completion by 2028.

The plan for this year is clear, with Ghana’s government programming an additional $5 million for payment in 2026.

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