Govt has cut IPP debt by 20%, now paying power bills on time - Mahama
John Dramani Mahama said his administration restructured and partly settled the $1.7 billion owed to Independent Power Producers (IPPs), speaking on Saturday, April 4, 2026, at the Kwahu Business Forum 2026. He said, "When we came into office, we had a debt overhang of about $1.7 billion owed to the independent power producers."
Mahama explained that negotiations with the IPPs led to concessions, with producers agreeing to absorb part of the losses in line with the national debt restructuring. He said, "Since Ghanaians were all taking haircuts from the debt restructuring, we told them they also must take haircuts… and they agreed… it amounted to about twenty percent of what was owed." The government made immediate lump-sum payments to producers who signed on and set out a timetable for clearing the remainder. He added, "If they signed on to it, we gave them an immediate down payment, and we gave them the dates for the subsequent payment."
Mahama described the most important gain as the government's ability to stay current on new bills. He stressed, "The best announcement is we are keeping up with their present-day bills… any bill they submit every month, we pay them for the electricity they produce." He noted that these measures are expected to ease financial strain on producers and bring greater stability to Ghana's electricity supply chain.
Quick Summary
President Mahama says his administration has been working to resolve debts owed to Independent Power Producers (IPPs). Negotiations and restructuring have taken place to address the financial strain - but what impact will this have?
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