ECG Won’t Be Sold

ECG Boss William Hutton MensahThe Electricity Company o f Ghana  (ECG) would not be sold, contrary to reports that the company is to be sold in fulfillment of conditionalities attached to the second Millennium Challenge Compact (MCC).

“The sale of ECG is not a subject for consideration under this compact,” said Emmanuel Armah Kofi Buah, Minister of Energy and Petroleum.

In a statement to the press, he explained that the proposal under the MCC was a derivative of ECG’s own on-going efforts at ensuring private sector participation in its operations.

He explained that the private sector participation option in distribution, was a generally accepted principle under the power sector reform efforts.

Mr Buah indicated that the discussion with the Millennium Challenge Corporation recognised ECG’s ongoing efforts at working with the private sector to improve on its operations, for the benefit of the people of Ghana and industry.

He mentioned such efforts as including outsourcing of collections, pre-payment metering points, meter reading, sub-contracting of operations and maintenance works.

“These efforts at resolving our distribution challenges should therefore, not be seen as sale of ECG or NEDCO,” he stated.

The Minister said after the successful execution and implementation of the first Millennium Challenge Compact, which focused on transforming the agriculture and transport sectors, the second compact had the objective of making interventions in the power sector to reduce poverty.

“With our challenges with electricity availability, sufficiency and reliability, this compact would focus on specific interventions in the power sub-sector aimed at increasing electricity access and reliability,” he explained.

Following a constraints analysis which showed that power was the single largest constraint to economic development, he said the compact was carefully developed to holistically address the challenges in the entire power supply chain, and added that to address the constraints of inadequate and unreliable power supply, the two public distribution companies of ECG and the Northern Electricity Distribution Company (NEDCO), were found to be critical.

“The distribution and access projects under the compact are therefore, expected to result in the sustainable improvement of the operational and commercial performance of the electricity distribution companies through reduction of ‘hidden costs’, increased investments and improved regulatory environment,” he said.

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