The Finance Minister Dr. Cassiel Ato Forson has disclosed that cabinet has approved the proposed private sector participation in the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo).

He added that the Legislative Instrument has been subsequently submitted to Parliament.

“Cabinet has already approved private sector participation, and 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 said in a Facebook post.

He insisted that the Energy Compact has come at the right time with the potential to make a lasting impact if the process is not 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”, he said.

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.