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Ghana

Transparency of Power Purchase Agreements (GH0048)

Overview

At-a-Glance

Action Plan: Ghana Action Plan 2024-2028 (December)

Action Plan Cycle: 2023

Status:

Institutions

Lead Institution: Public Utilities Regulatory Commission (PURC)

Support Institution(s): Ministry of Energy, Coalition of Stakeholders on Electricity Concession Arrangements (COSECA), Africa Centre for Energy Policy, Civil Society Platform on Oil and Gas, Economic Governance Platform, GACC, Energy for Growth Hub, Renewable Energy Association of Ghana, Natural Resource Governance Institute (NRGI).

Policy Areas

Legislation, Regulation

IRM Review

IRM Report: Ghana Action Plan Review 2023-2027

Early Results: Pending IRM Review

Design i

Verifiable: Yes

Relevant to OGP Values: Yes

Ambition (see definition): Low

Implementation i

Completion: Pending IRM Review

Description

Problem to be addressed

Opaque Power Purchase Agreements have created major governance and cost risks in Ghana's power sector. Because these contracts are often negotiated behind closed doors and not publicly disclosed, citizens, regulators, and oversight institutions cannot properly assess whether they deliver value for money, and their terms — tariffs, capacity payments, and other embedded obligations — escape scrutiny until their costs are already locked in. This lack of transparency increases the risk of corruption, weakens accountability, and has contributed to inefficient contract terms that raise electricity costs for consumers and expose the public purse to avoidable financial liabilities, resulting in excess capacity, mounting arrears, and rigid payment obligations that have required dozens of PPAs to be renegotiated and cleared at huge cost.

The commitment

Enhance transparency in power-sector contracting by ensuring public access to Power Purchase Agreements and related contracting information, and by establishing a clear legal and institutional framework for open and accountable disclosure.

Contribution of commitment to solving problem

●By making PPAs and related contracting information publicly accessible, this commitment closes the space in which rent seeking and corruption could potentially take root in PPA negotiations. Public disclosure subjects contract terms to scrutiny by citizens, regulators, and oversight institutions, making it harder for officials to negotiate or approve self-serving terms without detection. As seen in other sectors, disclosure does not eliminate risk entirely, but it makes poor or compromised decisions easier to identify and harder to defend. A clear legal and institutional framework also ensures this accountability outlasts any single administration

Relevance of commitment to OGP values

 The required disclosures will advance the OGP principles of transparency and democratic accountability.

Milestone Activity with a verifiable deliverable | Start Date - End Date

 Modalities for the disclosure of PPAs established | January, 2024 - December, 2024

 Develop and launch a disclosure portal to publish electricity contracts | January, 2026 - December, 2026

 Establish a standardized procedure for disclosing PPA
information. | January, 2026 - December, 2026

 Agreement on a framework to legally mandate full PPA
disclosure | January, 2027 - December, 2027


Commitments