Privatizing ECG Is The Right Way To Go But… – Mahama Cautioned
Nana Akomea, the Deputy Chairman of the 2024 NPP presidential candidate, Dr. Mahamudu Bawumia’s campaign team, has welcomed the decision to privatize the Electricity Company of Ghana (ECG).
The Minister-designate for Energy, John Jinapor has stressed significant private partnership with the ECG to improve efficiency of the company and electricity supply across the nation.
The government tells of a looming power crisis as it reveals over 2 billion dollar energy debt, hence portending a very gloomy picture about the sector.
As part of efforts to address the inefficiencies, President John Mahama says “if we don’t fix the Electricity Company of Ghana, we will continue to have a major problem with our whole power value chain. So, going ahead with privatising the last point of electricity distribution, bringing in private sector efficiency is something that we want to take up again”.
He assured stakeholders that decisions regarding ECG’s future would involve thorough consultations.
“We want to speak with the World Bank to get the expertise to be able to do that.”
Also, John Jinapor has announced the government’s plan to establish a seven-member Committee to explore the privatization options for the Electricity Company of Ghana.
“We believe there should be private sector participation”, Jinapor stated during the vetting before Parliament’s Appointment Committee.
The Energy Minister-designate further outlined a non-partisan approach to the process, emphasizing that “we will stay off as politicians and let them develop a framework in a transparent, open, and frank manner. Once we get the buy-in of Ghanaians, we can set standards using a Request for Proposal (RFP) or competitive tender process”.
Nana Akomea, reacting to this during a panel discussion on Peace FM’s “Kokrokoo” morning show, was optimistic this decision will help revamp the sector.
He stated that one of the things crippling ECG is debt as the company, he noted, makes about 40% losses.
Nana Akomea suggested that as part of the measures to privatize the electricity provider, Ghana’s currency dependency on the US dollar should be rectified.
“If the strength of the cedi matches the dollar, then ECG can improve but if the cedi is not strong, the company will still encounter these challenges”, he said paraphrastically.
Nana Akomea also asked the government to take a relook at the Power Distribution Services (PDS) in order to revitalize the energy sector.
About PDS
The Power Distribution Services Ghana (PDS) was an electricity distribution company in Ghana.
The government of Ghana and the Millennium Challenge Corporation (MCC) signed the Power Compact in 2014.
This compact was to improve the efficiency of Ghana’s power sector.
The Akufo-Addo government, in March 2019, awarded PDS a 25-year concession to manage ECG but suspended the deal in July 2019 citing allegations of fraud.
Source: Ghmessenger.com
