In a decisive step towards reforming Ghana’s energy sector, the government has submitted a Legislative Instrument (LI) to Parliament to enable competitive procurement of power generation services, Finance Minister Dr. Cassiel Ato Forson has revealed.
Speaking during a deep-dive session on the Ghana Energy Compact under the World Bank’s Mission 300 initiative, Dr. Forson described the move as a critical intervention aimed at improving transparency, efficiency, and value for money in energy contracting.
“We have submitted the LI to Parliament to ensure that all future procurement of power plants is done competitively,” he said. “This is essential if we are serious about solving the deep-rooted challenges in the energy sector.”
Dr. Forson emphasized that Ghana’s energy sector currently represents the single largest economic risk facing the country, with a financial shortfall of approximately $2 billion.
He pointed to inefficiencies along the energy value chain—particularly in the Electricity Company of Ghana (ECG)—as key contributors to the crisis.
“ECG alone could halve the shortfall if it fixes its inefficiencies,” he noted. “We cannot continue to pass these losses on to consumers.”
The Minister underscored the urgency of passing and implementing the Legislative Instrument as part of broader reforms, asserting that it would send a strong signal of government’s commitment to restructuring the sector.
“The Energy Compact comes at a crucial time. Time is of the essence,” he concluded.
