President John Dramani Mahama has announced that his administration has made significant progress in restructuring and partially settling the $1.7 billion debt owed to Independent Power Producers (IPPs), easing pressure on Ghana’s energy sector.

Speaking on the second day of the Kwahu Business Forum 2026 on Saturday, April 4, the President highlighted the scale of the financial burden his government inherited upon assuming office.

According to him, negotiations with the IPPs resulted in a mutual agreement for debt restructuring, with producers accepting to absorb part of the losses as part of the broader national debt restructuring efforts.

He explained that the IPPs agreed to take a reduction of approximately 20 percent of the total amount owed, aligning with similar sacrifices made by other stakeholders under the programme.

As part of the agreement, the government made initial lump-sum payments to participating producers and established a structured timeline for settling the remaining balance.

President Mahama emphasised that one of the most critical outcomes of the arrangement is the government’s ability to stay current on new financial obligations to the IPPs.

He noted that the administration is now consistently paying for electricity generated on a monthly basis, a move he said is helping to rebuild confidence among power producers and ensuring a more stable electricity supply.

The President added that the measures are expected to ease financial constraints within the energy sector and strengthen the overall reliability of Ghana’s power supply chain.