File photo of the Minister of Finance, Dr Cassiel Ato Forson
The government has approved private sector involvement in efforts to revive Ghana’s struggling energy sector which is reportedly losing around US$2 billion annually.
The Minister of Finance, Dr Cassiel Ato Forson made the announcement during a detailed discussion on the Ghana Energy Compact, held under the World Bank’s Mission 300 program.
“The problem is not just tariffs. The inefficiencies, especially in the distribution sector, are being passed on to the ordinary Ghanaian, making electricity costs unnecessarily high,” he said.
He identified the Electricity Company of Ghana (ECG) as a major contributor to the issue, arguing that the company could reduce the financial shortfall by half if it addressed its operational inefficiencies.
As part of the government’s strategy to tackle the challenge, Dr Forson said the Cabinet has approved a new approach that includes allowing private entities to participate in the sector.
He added that a Legislative Instrument has already been laid before Parliament to enable competitive bidding in the procurement of power generation services.
Speaking about the Ghana Energy Compact, he emphasised the need for swift and coordinated action, stating that the initiative has come at an opportune time.
“Time is of the essence. We must act quickly if we are to prevent further damage to our economy and improve the lives of Ghanaians,” he said.
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