Ghana has taken a key step toward reforming its energy sector by submitting a Legislative Instrument (LI) to Parliament that will enable competitive procurement of power generation services. This was announced by Finance Minister Dr. Cassiel Ato Forson during a deep-dive session on the Ghana Energy Compact under Mission 300 at the World Bank.
The move, according to Dr. Forson, is aimed at addressing longstanding inefficiencies and improving transparency and value for money in energy contracts. “We have submitted the LI to Parliament to ensure that all future procurement of power plants is done competitively,” he stated. “This is essential if we are serious about solving the deep-rooted challenges in the energy sector.”
The Minister emphasized that Ghana’s energy sector remains the biggest economic risk the country faces, with a current financial shortfall of about $2 billion. He noted that inefficiencies in the value chain, especially in the distribution sector, are driving up costs for ordinary Ghanaians.
“ECG alone could halve the shortfall if it fixes its inefficiencies. We cannot continue to pass these losses on to consumers,” he said.
Dr. Forson said the Legislative Instrument is a vital part of broader reforms and a signal of the government’s commitment to restructuring the sector.
He called for urgency in passing and implementing the LI, adding that the Energy Compact comes at a crucial time and must not be delayed.
“Time is of the essence,” he concluded.
