Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, has revealed that the cabinet has approved the proposed private sector participation in the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo).
The Finance Minister, currently leading a Ghanaian delegation at the World Bank in Washington, D.C., disclosed this on his social media page X formerly Twitter after a session on the Ghana Energy Compact.
“We have submitted the Legislative Instrument to Parliament to enable competitive procurement for power plants. These are critical steps toward bringing transparency and sustainability to the sector,” Dr. Forson stated.
“The Energy Compact has come at the right time. It has the potential to make a lasting impact, and we are hopeful that the process will not be delayed. Time is of the essence. We must act swiftly to turn this around for the good of our economy and the well-being of our people.”
The Minister did not disclose which of the three options proposed by the Technical Committee, constituted by Energy Minister Dr. Abdulai Jinapor, was endorsed by Cabinet.
The committee’s report, submitted on April 2, 2025, highlighted three options for consideration: Entity Concession, Multiple Lease, and Service Franchise.
Ghana’s power sector is saddled with a $2 billion debt, which has become a concern for the current administration.
Dr. Forson emphasized that Ghana’s energy sector is currently the biggest economic risk the country faces.
“This challenge goes beyond tariffs. The entire energy value chain requires urgent reform. Inefficiencies, especially in the distribution sector, are being passed onto the ordinary Ghanaian through high tariffs. ECG alone could cut the shortfall by half if it addresses these inefficiencies,” he said.
Source:https://energynewsafrica.com
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