Gov’t Submits Legislative Instrument to Enforce Competitive Bidding in Power Contracts
WASHINGTON, April 23, 2025 — The Government of Ghana has taken a decisive step toward reforming the country’s struggling energy sector by laying before Parliament a Legislative Instrument (LI) that mandates competitive bidding for all future power generation contracts.
The announcement was made by the Minister of Finance, Dr. Cassiel Ato Forson, during a high-level session on the Ghana Energy Compact under Mission 300, hosted by the World Bank in Washington, D.C.
A Bid for Efficiency and Transparency
Dr. Forson said the move is intended to boost transparency and secure better value for money in energy procurement, a sector long plagued by inefficiencies and rising debts.
“We have submitted the LI to Parliament to make competitive procurement of power plants the standard approach,” he stated. “If we are serious about fixing the deep-rooted problems in the energy sector, this is a necessary step.”
Tackling a $2 Billion Financial Gap
Describing the energy sector as Ghana’s most pressing economic challenge, the Finance Minister disclosed a financial shortfall of approximately $2 billion, driven largely by systemic inefficiencies—particularly at the Electricity Company of Ghana (ECG).
“ECG alone could reduce the shortfall by half if it addressed its internal challenges,” he noted. “We cannot continue to pass these losses on to consumers.”
The Urgency of Reform
The LI is part of a broader strategy to instill discipline in the procurement process and prevent the burden of mismanagement from being passed on to the Ghanaian public through increased tariffs and levies.
Dr. Forson urged lawmakers to treat the LI’s passage with urgency, warning that the success of the Ghana Energy Compact hinges on timely legislative action.
“Time is of the essence,” he stressed.
If passed, the LI is expected to usher in a new era of transparency and accountability in Ghana’s power sector, marking a critical step in ensuring the long-term sustainability of the country’s energy infrastructure.
Please download our HOTDIGITAL ONLINE APP and follow HotDigital Online on our social media platforms to stay updated on our upcoming initiatives.
#HotDigitalHealthAwareness #CommunityHealth #GhanaNursesAssociationUK #HealthMatters #HotDigitalOnline #StrongerTogether
