Accra, Feb. 27, – President John Dramani Mahama announced that the Government has achieved immediate savings of US$250 million after renegotiating power purchase agreements with nine independent power producers.
The agreements, aimed at addressing high electricity costs, also involved restructuring US$1.1 billion in legacy debt for repayment between 2026 and 2028.
“These revised agreements will be submitted to Cabinet, and I’m pleased to inform you, Mr. Speaker, they will be brought to Parliament for ratification,” the President stated during the 2026 State of the Nation Address.
He explained that a robust monitoring framework had been established to strengthen implementation of the cash waterfall mechanism, operationalised through the Electricity Company of Ghana’s single holding accounts, jointly overseen by the Ministry of Energy and Green Transition and the Public Utilities Regulatory Commission.
“This intervention has significantly reduced revenue leakages and enhanced ECG’s capacity to meet its payment obligations,” he said.
President Mahama noted that Cabinet had approved the multiple lease method for concessions in distribution utilities and emphasised the importance of private sector participation, particularly in billing and collection, as a means to reduce power losses.
“It is worrying that the Electricity Company of Ghana continues to experience high power losses, with reports indicating that around 25 percent of generated power is lost,” he added.
GHBUSS
27 Feb. 2026
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