President John Dramani Mahama says his administration has made significant headway in restructuring and partially settling the $1.7 billion debt owed to Independent Power Producers (IPPs), a move aimed at stabilising Ghana’s energy sector.
Speaking on the second day of the Kwahu Business Forum 2026 on Saturday, April 4, President Mahama outlined the scale of the financial burden inherited by his government upon taking office.
He disclosed that following extensive negotiations, government and the IPPs reached a mutual agreement to restructure the debt, with producers accepting to absorb part of the losses under the broader national debt restructuring programme.
According to the President, the IPPs agreed to a reduction of about 20 percent of the total debt, aligning with concessions made by other stakeholders participating in the programme.
As part of the arrangement, government has already made initial lump-sum payments to some of the power producers and put in place a structured timeline to clear the remaining balance.
President Mahama stressed that a key outcome of the agreement is the government’s renewed ability to meet its current financial obligations to the IPPs.
He noted that the administration is now consistently settling monthly payments for power generated, a development expected to rebuild trust with producers and ensure a more reliable electricity supply.
The President added that the measures will ease financial pressure within the energy sector and contribute to strengthening Ghana’s overall power supply chain.