Government to renegotiate power deals, settle IPP arrears – Ato Forson tells US Ambassador

Finance Minister Dr Cassiel Ato Forson says the government is working to clear outstanding arrears owed to Independent Power Producers (IPPs) and will soon submit revised power purchase agreements to Parliament.

He made this known during a meeting with the United States Ambassador to Ghana, Virginia Palmer, at the Ministry of Finance on Tuesday March 25 2025.

In a post shared on his official Facebook page after the meeting, Dr Forson acknowledged the long-standing support of the United States, especially during Ghana’s economic crisis in 2022.

He said the engagement reinforced the strong ties between both countries.

Touching on recent economic developments, Dr Forson noted that Ghana had faced some setbacks in implementing its programme with the International Monetary Fund (IMF).

He said government remained determined to take the necessary steps this year to stay on track.

“We are fully aware of the arrears owed to IPPs and are taking steps to address them,” he said, adding that reforms have been made to the Cash Waterfall Mechanism to prevent further accumulation of debt.

The mechanism is a payment structure used to distribute revenue collected in the power sector to various entities, and has in the past drawn criticism from private power producers over delays and shortfalls.

Dr Forson said the revised power purchase agreements, once completed, will be brought before Parliament for consideration.

According to the minister, Ambassador Palmer congratulated him on his appointment and described his recent address at the National Economic Dialogue as the most candid speech she had heard from a Ghanaian Finance Minister in four decades.

She also expressed satisfaction with the assurance that payments owed to American companies would be honoured.