The government’s decision to fully repay funds drawn from the World Bank Partial Risk Guarantee has been described as a confidence-building move that could help stabilise Ghana’s troubled energy sector.
Legal practitioner and governance analyst Austin Kwabena Brako-Powers said the repayment was timely, warning that allowing the debt to linger would have deepened existing problems in the power industry. Speaking on TV3’s Big Issues, he noted that unresolved arrears of this nature often weaken investor trust and threaten the reliability of power generation.
According to him, while such repayments are not unusual, their importance lies in preventing further deterioration in an already fragile sector that plays a critical role in the broader economy.
The comments come after Finance Minister Dr Cassiel Ato Forson announced that the Mahama administration has cleared all liabilities arising from the World Bank Partial Risk Guarantee facility. He explained that the US$500 million guarantee, established in 2015 to safeguard investors in the Sankofa Gas Project, had been fully utilised before the current administration assumed office in January 2025.
Dr Forson said the drawdown resulted from years of unpaid gas bills to project partners ENI and Vitol, who invested close to US$8 billion in developing the gas fields. The guarantee was intended to cushion the investors in the event of government payment defaults.
He disclosed that by December 31, 2025, government had repaid a total of US$597.15 million, inclusive of interest, thereby restoring the guarantee in full. In addition, outstanding gas invoices owed to ENI and Vitol for supplies between January and December 2025 have also been settled.
Analysts say the move sends a positive signal to investors and development partners, reinforcing government’s commitment to addressing legacy challenges in the energy sector and improving financial discipline.
