Cabinet approves private sector participation in ECG, NEDCo – Dr. Forson

Finance Minister Dr. Cassiel Ato Forson announced cabinet approval for private sector involvement in the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo).

He mentioned that the Legislative Instrument has been submitted to Parliament.

“Cabinet has approved private sector participation. We have submitted the Legislative Instrument to Parliament for competitive procurement of power plants,” Dr. Forson stated on Facebook.

He noted that these steps are crucial for transparency and sustainability in the sector.

Dr. Forson believes the Energy Compact is timely and can create a lasting impact if not delayed.

“Time is of the essence. We must act quickly for our economy and people’s well-being,” he added.

Ghana’s power sector faces a $2 billion debt, raising concerns for the government.

Dr. Forson highlighted that this energy crisis is the biggest economic risk currently facing Ghana.

“This issue goes beyond tariffs. The entire energy value chain needs urgent reform,” he explained.

Inefficiencies in distribution lead to high tariffs affecting ordinary Ghanaians.

He stated that ECG could reduce its shortfall by half by addressing these inefficiencies.