Finance Minister Announces Private Sector Involvement in Energy Sector Management

Finance Minister Cassiel Ato Forson says the government intends to engage the Private sector in running the country’s energy sector.

Already, he said the cabinet had approved private sector participation, with the Legislative Instrument forwarded to Parliament to enable competitive procurement for power plants.

“These are critical steps toward bringing transparency and sustainability to the sector,” he said in relation to the Ghana Energy Compact under Mission 300 at the World Bank on Tuesday.

He believes this is the sure way to deal with the country’s “biggest economic risk”, which is the energy sector.

He noted that the sector is burdened with a financial shortfall of approximately $2 billion which surpasses the domestic capital expenditure.

He opined, “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.”

As such, he said, the Energy Compact was timely to make a lasting impact.

“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.”

Source: opemsuo.com/Hajara Fuseini