Finance Minister Dr. Cassiel Ato Forson has revealed that Ghana narrowly avoided a relapse into nationwide power outages after government secured a renegotiated agreement with Independent Power Producers (IPPs), resulting in savings of $252 million
Speaking on Joy News’ PM Express shortly after presenting the 2026 Budget, Dr. Forson said the administration inherited a tense standoff with IPPs, who were demanding large outstanding payments and threatening to shut down their plants—a move that could have plunged the country back into dumsor.
According to him, government opted for a hands-off approach, allowing an independent Ghanaian energy expert and a civil society–led team to take charge of the negotiations.
“The government is not getting involved. An expert who is a civil society person, together with a team, leads it and renegotiates for us. And I’m telling you, they did a fantastic job,” he said.
Dr. Forson disclosed that the intervention produced a significant breakthrough, delivering savings of exactly $252 million for the state. The team, he added, did the work at no cost to government.
He further noted that the arrears owed to the IPPs were restructured to reduce pressure on the national budget.
“We will pay it over four years so that it won’t be a one-off payment and its resultant effect on the national budget,” he explained.
Under the revised payment schedule, government is committing $301 million this year and $345 million next year, with the remaining balance to be settled subsequently.
The minister emphasised that the successful renegotiations have restored confidence within the power sector.
“The IPPs are now happy that we have not only renegotiated and paid their old debt—the legacy debt—but that we are staying current. When they bring invoices, we are able to pay on time.”
He noted that the persistent threats of shutdowns have now ceased, and the stability in electricity supply is proof of progress.
Dr. Forson recalled the alarm that greeted the administration when it assumed office: warnings that Ghana risked falling back into dumsor if arrears were not cleared.
“You recall that when we took office, there was this big buzz about the cost government of Ghana owes these IPPs. People said there would be no power, and there would be dumsor. They insisted government should go and pay them,” he said.
The minister maintained that the new arrangement has brought relief to both government and IPPs, ensuring uninterrupted power and averting a national energy crisis.