The government has cleared about US$1.47 billion in legacy debts within Ghana’s energy sector, according to the Minister for Energy and Green Transition, Dr John Abdulai Jinapor.
Dr Jinapor said the payment forms part of efforts to address longstanding financial obligations that have affected the stability and operations of the energy sector. He noted that settling the debts has helped improve the financial position of the sector.
According to the Minister, the development has also strengthened the government’s capacity to meet its financial obligations to Independent Power Producers (IPPs), who play a major role in Ghana’s electricity supply.
Dr Jinapor further disclosed that the increased use of natural gas instead of liquid fuel has generated significant savings for the country. He put the savings from the fuel-switching strategy at approximately US$500 million.
He also pointed to reforms in the Cash Waterfall Mechanism, saying the changes have contributed to improved payments to power producers. The government believes these measures will help create greater financial stability and support the sustainability of Ghana’s energy sector.
