Ghana has taken a bold step to reform its energy sector. The Ministry of Finance has submitted a Legislative Instrument (LI) to Parliament to enforce competitive procurement of future power generation projects.
Finance Minister Dr. Cassiel Ato Forson announced the move during a session on the Ghana Energy Compact at the World Bank. He emphasized that the LI is vital to broader reforms designed to fix inefficiencies and ensure transparency.
“This is a necessary action,” Dr. Forson stated. “To tackle the deep-rooted issues in our energy sector, we must demand openness and value for money in every contract.”
He warned that the energy sector poses the greatest threat to Ghana’s economy. Currently, the sector faces a financial shortfall of about $2 billion. Much of this gap, he explained, results from operational inefficiencies, especially within the Electricity Company of Ghana (ECG).
“ECG alone could cut the deficit in half if it fixed its internal issues,” he said. “We cannot keep making consumers pay for these losses.”
Dr. Forson urged Parliament to pass the LI without delay. According to him, this reform is central to Ghana’s energy recovery efforts and shows the government’s strong commitment to change.
“We must act quickly,” he concluded. “The time to support the Energy Compact is now.”
