Ghana: PPA Renegotiation – Gov’t Can’t Take Credit For Fixing Its Own Mess – Egyapa Mercer

Former Deputy Minister of Energy under the immediate past New Patriotic Party (NPP) administration, Hon. Andrews Egyapa Mercer, has questioned the government’s attempt to claim praise for renegotiating what he described as expensive power purchase agreements (PPAs) with nine Independent Power Producers (IPPs), which reportedly lowered tariffs and resulted in purported US$250 million in savings.

He recalled that the PPAs renegotiated by the government through the Ministry of Energy and Green Transition were originally signed during President John Mahama’s first term in office (2012-2016).

Mercer’s comments come in response to the recent announcement in the 2026 Budget Statement, presented by Finance Minister Dr. Cassiel Ato Forson, that the government’s renegotiation of PPAs with IPPs has saved Ghana over US$250 million.

According to him, the ruling government should not rewrite history or distort the country’s accountability.

“This is a classic case of political theater where credit is claimed for resolving a crisis the same government created during its previous administration.

Between 2012 and 2016, under President John Mahama and the NDC government, Ghana contracted excessive and costly PPAs with IPPs,” he asserted.

He explained that these contracts overshot the country’s actual power needs—nearly double the required capacity—forcing taxpayers to pay for unused excess power, which drained public finances significantly.

“This reckless energy sector expansion was a major contributor to the economic downturn before and during the COVID-19 pandemic. The financial burden was borne by every Ghanaian and became a key reason the economy was labeled mismanaged. The current government conveniently ignores this origin and positions itself as the savior for ‘renegotiating’ these contracts. In truth, it was the succeeding NPP administration that took on the challenge of renegotiating payment terms with the IPPs, achieving some success despite many difficulties,” he added.

He noted that claims in the budget statement that about US$1.5 billion was paid to honor renegotiated PPA commitments and reduce legacy arrears, with the government now claiming savings of over US$250 million, oversimplify the situation.

Mr. Mercer acknowledged that while these steps by the ruling government are important, they build on efforts first made by the NPP government to address inherited debt.

“To claim credit now for reworking agreements fundamentally linked to policies and contracts signed by the same political actors in 2016 is disingenuous. Such claims appear designed to deceive the public and rewrite history for political gain,” he stated.

He stressed that Ghanaians deserve transparency and accountability, adding that the country must not normalize financial irresponsibility or accept that governments can create crises and then take credit for fixing their own messes.

According to Mercer, the energy sector needs genuine reform rooted in prudence and transparency, not political spin. Until then, credit-taking for cleaning up self-inflicted wounds will be rightly viewed with skepticism.

“The lesson is clear: one cannot claim credit for cleaning up a financial mess they themselves helped create. The people of Ghana deserve honesty and leadership that acknowledges past mistakes,” he concluded.