Government moves to reform power sector with new law mandating competitive bidding

In a bold step toward reforming Ghana’s energy sector, the government has submitted a Legislative Instrument (LI) to Parliament that, if passed, will make competitive bidding a legal requirement for all future power generation contracts.

The Finance Minister, Dr. Cassiel Ato Forson, announced this initiative on April 23, 2025, during the World Bank's “Mission 300” session on the Ghana Energy Compact held in Washington, D.C. 

He emphasized that the proposed regulation aims to enhance transparency and ensure greater value for money in energy procurement processes.

Describing the energy sector as Ghana’s most critical economic hurdle, the Minister revealed that it is currently burdened by a financial deficit of approximately US$2 billion. A significant portion of this shortfall, he noted, stems from inefficiencies, particularly within the Electricity Company of Ghana (ECG).

Dr. Forson underscored that the LI is part of a broader push to instill fiscal discipline in the power procurement process and shield citizens from the financial consequences of sector misgovernance, such as rising tariffs and levies.

He called on Parliament to expedite the passage of the LI, stressing that timely approval is vital for the success of the Ghana Energy Compact.