Ghana narrowly avoided a return of electricity outages, popularly known as “dumsor,” after the government finalized a renegotiated agreement with Independent Power Producers (IPPs) that saved the country $252 million, Finance Minister Dr. Cassiel Ato Forson has revealed.
Speaking on Joy News’ PM Express following the presentation of the 2026 Budget, the Ajumako-Enyan-Esiam MP described the situation the government inherited as tense, with IPPs demanding large outstanding payments and threatening to shut down their power plants.
“You recall when we assumed office, there was intense concern about how much the government owed these IPPs,” Dr. Forson said. He added that warnings were so dire that some suggested a nationwide power collapse was imminent if the debts were not addressed.
Rather than directly intervening, the government tasked an independent Ghanaian expert, supported by a civil society-led team, to negotiate the debts on the state’s behalf.
“They led the negotiations independently, and I must say they did a fantastic job,” Dr. Forson said.
The result, he explained, was a significant financial win for the country. “The state has saved exactly $252 million, and the team did this pro bono,” he noted.
The agreement also restructured the arrears to reduce immediate budget pressure, with payments spread over four years instead of a lump sum. Under the new schedule, Ghana will pay $301 million this year, $345 million next year, with the remaining amounts phased accordingly.
Dr. Forson highlighted the impact of the deal, emphasizing that power supply threats from IPPs are now resolved. “You’ve heard of IPPs threatening to shut down; that issue is now behind us. The lights are on, and the arrangement has satisfied the producers,” he said.
He added that the IPPs are content with the new arrangement, which covers both legacy debts and ensures timely payment of future invoices.
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