By: Henrietta Afful
Ghana has taken a major step toward reforming its energy sector by submitting a Legislative Instrument (LI) to Parliament aimed at enabling the competitive procurement of power generation services.
The announcement was made by Finance Minister, Dr. Cassiel Ato Forson during a deep-dive session on the Ghana Energy Compact under Mission 300 at the World Bank in Washington.
This regulation, Dr. Forson said, is aimed at addressing longstanding inefficiencies and enhance 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” Dr Forson said.
He emphasized that the energy sector remains the biggest economic risk Ghana faces, with a current financial shortfall of about $2 billion.
He pointed to inefficiencies in the energy value chain—particularly within the Electricity Company of Ghana (ECG)—as a key driver of rising costs for consumers.
“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.
Dr. Forson emphasized that the LI is a critical component of broader reforms and demonstrates the government’s commitment to restructuring the sector. He urged swift passage and implementation of the regulation.
“Time is of the essence,” he said.
