Power purchase agreements must be transparent — Energy Minister

The Minister of Energy and Green Transition, Dr John Abdulai Jinapor, has given the assurance of greater transparency in the handling of power purchase agreements (PPAs), insisting that such contracts must not be shrouded in secrecy.

He said there were consequently plans to establish a dedicated ministry website where all power purchase agreements would be published to ensure public access.

“Anyone who wants a power purchase agreement can go there and download it,” he said, emphasising the government’s commitment to openness and accountability.

Speaking during a working visit by members of the Open Government Partnership (OGP) Caucus to the Energy Ministry, Dr Jinapor welcomed commitments to make power purchase agreements publicly accessible, describing transparency efforts as both “instrumental and useful”.

“We have had a legislative instrument passed to regulate procurement processes in the power sector,” he said.

Visit

The visit, led by the Vice-Chairperson, Alexander Akwasi Acquah, formed part of ongoing efforts to evaluate the progress of government institutions in implementing commitments under Ghana’s National Action Plan.

The other members of the committee were the Member of Parliament (MP) for Sene East, Dominic Nampare; the MP for Atwima Nwabiagya North, Shirley Kyei; the MP for Trobu Constituency, Gloria Owusu; the MP for Nsuta/Kwama Beposo, Adelaide Ntim, and the MP for Kwadaso, Professor Kingsley Nyarko.

Transparency essential

Dr Jinapor stated that the push for transparency had become essential, given the longstanding concerns about power purchase agreements in Ghana, which had often been negotiated behind closed doors.

Such secrecy had been linked to inefficiencies and high costs passed on to consumers, he said.

To address such a challenge, he said his ministry had already submitted all such agreements to Parliament and had recently renegotiated one agreement approved by a previous administration.

That agreement, he said, had since been presented for parliamentary consideration. 

Why call?

Past controversies surrounding power purchase agreements include the cancellation of an agreement with the Ghana Power Generating Company in 2017.

The decision led to an international arbitration involving Trafigura, culminating in a $140 million judgment against Ghana.

A key recommendation is to enhance transparency in the negotiation and disclosure of power purchase agreements to prevent similar disputes and ensure better value for money in future agreements.

Ghana has been a member of the Open Government Partnership since 2011 and continues to play an active role through Parliament.

The OGP Caucus, established to oversee the implementation of transparency commitments, has been engaging key institutions, including the Internal Audit Agency and the Commission on Human Rights and Administrative Justice, as part of its oversight mandate.

Mr Acquah said a key component of the OGP National Action Plan was amending the mandate of the Public Utilities Regulatory Commission (PURC) to include public disclosure of PPAs and ensure transparency in power-sector contracting.