Finance Minister Dr. Cassiel Ato Forson has revealed that the current administration inherited a severely distressed energy sector with annual financing shortfalls exceeding $1.5 billion.
He made the disclosure during the presentation of the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24.
“We inherited a bleeding energy sector with annual financing shortfalls over $1.5 billion,” Dr. Forson stated.
He attributed the situation to unsustainable debts, poorly structured power purchase agreements, and inefficiencies that continue to exert significant pressure on the economy.
The Minister explained that the financing gap had resulted in an accumulation of arrears and payment delays across the energy value chain, undermining investor confidence and straining public finances.
He stressed the urgency of implementing reforms to restore financial viability and improve service delivery.
According to him, the government has initiated corrective measures, including the renegotiation of power purchase agreements and efforts to enhance revenue collection within the sector.
Dr. Forson assured Parliament of the administration’s commitment to restoring financial discipline and accountability in Ghana’s energy sector.
Source: Ernest Arhinful
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