Ghana has taken a significant step towards reforming its energy sector by submitting a Legislative Instrument (LI) to Parliament that will enable competitive procurement of power generation services. Finance Minister Dr. Cassiel Ato Forson announced this during a World Bank event, stating that the move aims to address inefficiencies and improve transparency and value for money in energy contracts.
According to Dr. Forson, the LI will ensure that all future procurement of power plants is done competitively, which is essential for solving the sector’s deep-rooted challenges. He emphasized that Ghana’s energy sector poses the biggest economic risk to the country, with a current financial shortfall of about $2 billion, largely due to inefficiencies in the value chain.
The Minister called for urgency in passing and implementing the LI, stressing that time is of the essence in addressing the sector’s challenges. He also highlighted the need for the Electricity Company of Ghana (ECG) to fix its inefficiencies, which could significantly reduce the financial shortfall. The government’s commitment to restructuring the sector is signaled through this Legislative Instrument, which is part of broader reforms.
Ruth Abla ADJORLOLO
