The government has successfully restructured $1 billion in legacy debt owed to Independent Power Producers (IPPs). Finance Minister Mohammed Amin Adam made the announcement on July 1, 2024, alongside the Bank of Ghana and the International Monetary Fund.
The agreement, reached after months of negotiations, restructures Power Purchase Agreements (PPAs) and clears arrears accumulated over years of financial strain in the energy sector. Minister Adam hailed the deal as a vital step towards revitalizing Ghana’s energy infrastructure and bolstering economic growth.
The restructuring agreement includes revised payment terms and adjustments to contractual obligations, ensuring IPPs receive timely payments and continue to contribute to Ghana’s energy needs without interruptions. The deal is part of Ghana’s broader Energy Sector Recovery Programme (ESRP), aimed at addressing systemic challenges and enhancing sectoral resilience.
Minister Adam expressed confidence in the transformative impact of these reforms on Ghana’s economic stability and growth trajectory. “With these agreements in place, we anticipate improved financial health for the energy sector, reduced operational risks, and enhanced investor confidence,” he said. The deal is expected to significantly boost investor confidence and provide a solid foundation for Ghana’s economic recovery, setting the stage for sustained growth and development in the coming years.
