Gov’t makes progress on $1.7bn power debt restructuring- Mahama

President John Mahama has announced significant progress in resolving a $1.7 billion debt owed to Independent Power Producers (IPPs), revealing that his administration has secured concessions from the producers and established a structured repayment plan.

Speaking on the second day of the Kwahu Business Forum on Saturday, April 4, 2026, the President described the dollar-denominated obligation as a major hurdle inherited by his government upon taking office.

According to President Mahama, negotiations with the IPPs led to an agreement that reduced the overall debt burden, with producers accepting a write-down equivalent to approximately 20 percent of what was owed.

“Since Ghanaians were all taking haircuts from the debt restructuring, we told them they also must take haircuts… and they agreed,” the President explained.

Under the agreed framework, the government has made immediate down payments to the producers and provided a clear schedule for settling the remaining balance.

However, President Mahama highlighted that the most significant achievement has been the government’s ability to consistently meet its ongoing financial obligations to power producers.

“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,” he emphasised.

The President said the improved payment discipline is helping restore trust in the energy sector, strengthen relationships with producers, and ensure reliable power generation. The measures are expected to reduce financial strain on IPPs while promoting greater stability across Ghana’s electricity supply chain.