“Mahama Administration Inherited a Bleeding Energy Sector with $1.5bn Annual Deficit” – Ato Forson
Finance Minister blames legacy debts, inefficient PPAs, and poor revenue collection for sector’s financial crisis.
- Energy sector was losing over $1.5bn annually due to legacy debts and poor agreements
- Financial instability in the sector threatened national economic recovery
- Government is implementing reforms to restore efficiency and transparency
Finance Minister Dr. Cassiel Ato Forson has revealed that the Mahama administration inherited a severely troubled energy sector, plagued by an annual financial shortfall exceeding $1.5 billion.
Presenting the 2025 Mid-Year Budget Statement to Parliament on Thursday, July 24, Dr. Forson described the energy sector as being in critical condition when the new government assumed office. He attributed the massive funding gaps to a mix of legacy debts, inefficient power purchase agreements (PPAs), poor revenue recovery, and high operational costs across the electricity supply chain.
“The energy sector we inherited was bleeding, with annual deficits surpassing $1.5 billion,” he emphasized.
According to the Finance Minister, the deep-rooted financial instability in the sector has threatened the broader economy since 2023, burdening the national budget and impeding energy security and economic revitalization.
Dr. Forson noted that the Mahama government has begun implementing key reforms aimed at reversing the sector’s decline. These include renegotiating expensive PPAs, cutting down on excess capacity payments, and improving governance and transparency.
He assured lawmakers that the administration is committed to rebuilding the energy sector into a reliable and efficient backbone of Ghana’s development.
