From a legal and energy policy perspective, the issue of the payment is fundamental; it is a contract credibility moment for Ghana.
For years, persistent non-payment for gas supplied to the power sector led to the exhaustion of the World Bank Partial Risk Guarantee (PRG) that underpinned the Sankofa Gas Project.
That guarantee was not symbolic. It was the legal instrument that made billions of dollars of private investment possible. Its depletion signalled a serious breakdown in contract discipline and undermined Ghana’s standing with lenders and investors.
By fully repaying the amounts drawn on the PRG and clearing outstanding gas arrears owed to ENI and Vitol, the Government has effectively restored Ghana’s reputation as a country that honours its contracts even when doing so is fiscally painful.
The settlement of legacy IPP debts is equally important. Unpaid power purchase obligations are not just accounting entries; they translate into arbitration risk, interest accumulation, government guarantees being called, and long-term pressure on tariffs.
Paying down these liabilities reduces legal exposure and strengthens Ghana’s negotiating position going forward.
This does not mean tariffs will suddenly fall. It does not mean the energy sector is “fixed.” But it does mean something critical has happened: there will be renewed confidence in Ghana’s energy sector.
Energy stability is not built on rhetoric. It is built on contracts, guarantees, and payment discipline. This reset, even if expensive, was necessary.
When we discuss electricity tariffs, IMF programmes, or future power investments, this context matters.
The lights stay on when the contracts are honoured.
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