As part of efforts to safeguard American investments, U.S. House Foreign Affairs Committee Chairman Brian Mast is urging the International Monetary Fund (IMF) to ring-fence a portion of its next disbursement to Ghana for the payment of debts owed to Independent Power Producers (IPPs).
Chairman Mast in a formal letter to U.S. Treasury Secretary Scott Bessent on Thursday, expressed concern over Ghana’s failure to honor its financial commitments under the IMF program.
This failure, he says, has left power generation facilities, including those owned by U.S. pension funds and taxpayers, in a financially strained position.
In a letter cited by The High Street Journal, Chariman Mast maintained that Ghana has failed to uphold its commitments to IPPs under the terms of its most recent International Monetary Fund (IMF) program. Among these IPPs are two power generation facilities owned by U.S. pension funds and the U.S. taxpayer.”
Chairman Mast further indicated these arrears pose a serious risk to ongoing U.S. investments in Ghana’s energy sector.
According to the letter, American investors have observed recent payments made by Ghana’s Electricity Company (ECG) to Twin City Energy and Early Power Ltd., each receiving around $5.5 million, still below the expected $7.5 million per facility.
Though seen as a marginal improvement, Mast argues that it is not enough to restore investor confidence or relieve the financial stress on IPPs.
Due to this challenge, he is demanding that a part of the next tranche of the $3 billion bailout from the IMF be earmarked to settle the debt Ghana owes to the IPPs.
“I now recommend that the United States Executive Director to the IMF, once appointed and confirmed, formally request that a specific portion of the next IMF disbursement to Ghana be explicitly directed towards settling outstanding payments owed to the IPPs,” the Chairman indicated in the letter.
Chairman Mast also cast doubt on the commitment of Ghana’s government to implement meaningful solutions. He criticized former President John Mahama’s advisory team for offering “mere talking points” without a clear commitment to channeling proposed strategies, such as ring-fencing or external refinancing, toward the energy sector arrears.
“President Mahama does not appear to be listening to his advisors as proposed solutions – like ring-fencing – remain mere talking points,” he added.
This call revives earlier Congressional advocacy, which had recommended conditioning the IMF’s December 2023 tranche on Ghana resolving outstanding power sector obligations.
Ghana’s energy sector is significantly reliant on private investment, and failure to meet payment obligations could derail critical energy infrastructure, threaten supply reliability, and further erode investor trust.
For the United States, the issues touch on the protection of U.S. capital in foreign markets, especially in developing countries where risks remain elevated.
