Gov't making progress in clearing $1.7bn power debt - Mahama
President John Mahama disclosed that his administration has made headway in tackling the country's power sector liabilities, announcing the restructuring and partial settlement of a $1.7 billion debt owed to Independent Power Producers (IPPs). He addressed participants on the second day of the Kwahu Business Forum on Saturday, April 4, 2026, saying, "When we came into office, we had a debt overhang of about $1.7 billion owed to the independent power producers."
The government entered into negotiations with the IPPs, resulting in concessions that reduced the overall debt burden. The producers agreed to absorb part of the losses as part of the broader national restructuring effort. President Mahama 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." Following the agreement, the government established a repayment framework that includes initial lump-sum payments and a timetable for settling the remaining balance.
President Mahama underscored the government's ability to consistently honour its ongoing financial commitments to power producers. He emphasized, "The best announcement is [that] we are keeping up with their present-day bills… any bill they submit every month, we pay them for the electricity they produce." The measures are expected to reduce financial strain on IPPs while promoting greater stability across Ghana's electricity supply chain.
Quick Summary
President Mahama says his administration has been working to resolve challenges in the power sector. He says they've been addressing a substantial debt owed to Independent Power Producers - but the details of how remain to be seen.
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