Thursday, February 13, 2025

CTPD Calls For A Public Database On Power Purchase Agreements To Enhance Transparency And Accountability In Zambia’s Energy Sector

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The Centre for Trade Policy and Development (CTPD) urges the Zambian government to establish a publicly accessible database on Power Purchase Agreements (PPAs) to address the growing fiscal, social, and climate challenges in the energy sector. PPAs, which outline the terms for electricity generation and procurement, are critical to resolving Zambia’s
energy crisis. However, the lack of transparency in these agreements has led to unsustainable public debt, limited competitive procurement, and missed opportunities for clean energy development.

Zambia is not alone in facing these challenges. Countries like Ghana have demonstrated the transformative potential of transparency by launching public PPA registers. These initiatives have reduced fiscal risks, attracted high-quality investments, and promoted competitive pricing,ultimately fostering sustainable energy systems. Zambia stands to gain similar benefits by adopting this best practice.

Currently, the absence of a public PPA database leaves citizens uninformed about commitments made on their behalf and creates uncertainties for investors. A transparent register would enable public scrutiny of critical terms such as tariffs, contract durations, and risk allocation. This would not only safeguard public resources but also build investor confidence, ensuring that Zambia’s energy sector is financially sustainable, climate resilient, and socially inclusive.
CTPD calls on the Zambian government, particularly the Ministry of Energy, the State utility, and the Energy Regulation Board (ERB), to prioritize the establishment of a public PPA database.

This initiative is not just a step towards transparency—it is a necessary measure to secure Zambia’s energy future. We also urge civil society, the media, and the public to join this call for accountability and sustainable development.

Issued by:
Lucy P. Musonda (Ms)
Legal Researcher, Centre for Trade Policy and Development

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