$1.47bn legacy debt cleared – Energy Minister
By Amoako Kwame The government has cleared about US$1.47 billion in legacy debt and has made savings of about $750 milllion in Ghana’s energy sector. Significant savings have been made through a series of financial and operational reforms. According to the Minister for Energy and Green Transition, Dr John Abdulai Jinapor, government saved approximately US$500 […]
Ghana's government has successfully cleared $1.47 billion in legacy debt and achieved savings of $750 million in the energy sector. The Minister for Energy and Green Transition, Dr John Abdulai Jinapor, revealed that these improvements were made through financial and operational reforms, including shifting power generation from expensive liquid fuels to cheaper natural gas, renegotiating with Independent Power Producers (IPPs), and restructuring the Cash Waterfall Mechanism (CWM).
The CWM, a transparent financial model, saw monthly declarations increase from GH¢6 billion to nearly GH¢15 billion, with IPPs receiving close to 100% of their invoices. Before the reforms, IPPs only received 42% of their invoices. The government also canceled 202 ECG contracts valued at $227 million, £1.17 million, and €4 million, aiming to restore financial discipline and improve sector sustainability.
These efforts have resulted in a more efficient energy sector, enabling Ghana to go 10 months without load shedding in 2026.
Written by urgent.news from GBC Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
