Ghana Nears Sale of National Power Firm

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Ghana’s Minister of Energy, Boakye Agyarko, has disclosed that a technical assessment to ascertain the value of all assets of the Electricity Company of Ghana (ECG), the country’s national power distributor is currently underway.

The technical assessment is to enable the government to ascertain the total value of assets belonging to the company, before leasing to a private manager through the Private Sector Participation (PSP) under the Ghana Power Compact.

“A project is currently underway for a technical and condition assessment of ECG’s assets,” he said in Accra, during the inauguration of an eight-member Board of Directors for the ECG in Accra, adding that the timely completion of this project is critical to the success of PSP transaction.

“There are very urgent issues that the board must tackle immediately after the inauguration. Under the concession arrangement, the assets of ECG will be leased to a private investor to manage, operate and invest for a period of 20 years,” the minister said.

The concessionaire is expected to pay for the use of ECG’s assets. It is, therefore, imperative that ECG updates and hands over credible list of assets to the concessionaire.”

The minister urged the new board to expedite action to resolve all lingering issues relating to the company’s operational challenges, as well as processes concerning the imminent concession arrangement.

“I am confident that the board will navigate ECG onto the path of the financial and operational turnaround in the shortest possible time,” he intimidated.

He further charged the board to provide the right type of leadership, the needed incentives and innovations to improve the general performance of the company, especially, improve its revenue collection and reduce losses in the system.

On staff issues, the minister indicated that there would be “no involuntary layoffs of ECG staff as a result of the concession,” as President Akufo Addo assured during the May Day celebrations.

He said, however, that “In spite of this assurance of job security, there are still significant labour related issues that will require your serious and urgent attention. I am confident that with your collective experience, all the outstanding labour and allied issues will be dealt with in the most diligent manner.”

 

 

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