President John Dramani Mahama says government has secured strategic agreements with upstream oil and gas partners to ensure reliable and affordable electricity supply while strengthening Ghana’s energy sector financial sustainability.
Addressing Parliament, President Mahama disclosed that government has reached a comprehensive payment roadmap with Talo Oil and Jubilee Field Partners to guarantee full payment for all gas consumed in power generation.
“We have held constructive engagements with Talo Oil and the Jubilee Field Partners, and we have reached a comprehensive roadmap to guarantee full payment for all gas that is consumed,” President Mahama stated.
He explained that the initiative forms part of government’s broader strategy to support reliable nationwide electricity generation and accelerate industrial growth through increased domestic gas supply.
According to the President, engagements with upstream partners have already resulted in increased gas production, guided by a national vision to rapidly scale up domestic gas supply and reduce reliance on expensive liquid fuels.
“Beyond clearing inherited arrears, a robust framework has been established to strengthen and monitor implementation of the cash waterfall mechanism,” he added.
President Mahama also announced the operationalization of the Electricity Company of Ghana (ECG) single holding account, which is jointly overseen by the Ministry of Energy and Green Transitions and the Public Utilities Regulatory Commission (PURC).
He said the intervention has significantly reduced revenue leakages while improving ECG’s capacity to meet its financial obligations.
“The operationalization of ECG’s single holding account has significantly reduced revenue leakages and enhanced ECG’s capacity to meet its payment obligations,” he said.
In a major push to address the high cost of electricity, government has successfully renegotiated several Power Purchase Agreements with nine Independent Power Producers (IPPs).
President Mahama revealed that the negotiations have resulted in substantial fiscal savings for the country.
“Engagements with the nine independent power producers have resulted in $250 million in immediate savings and the restructuring of $1.1 billion in legacy debt for payment between 2026 and 2028,” he noted.
He added that the revised agreements will be submitted to Cabinet and subsequently presented to Parliament for ratification.
“These revised agreements will be submitted to Cabinet and will be brought to Parliament for ratification,” the President stated.
