ECG

A private sector consortium on Friday took over the operations of Ghana’s state owned power utility, the Electricity Company of Ghana (ECG), a release said.

The takeover by Power Distribution Services Ghana Ltd.(PDS), a 51 percent Ghanaian-owned company followed successful arrangements under the United States Millennium Challenge Compact for private sector participation in the West African country’s power energy sector management.

Business24

PSD will therefore be solely responsible for the management and operations of Ghana’s power distribution company for the next 20 years.

“The Concessionaire, PDS, is expected to strengthen the governance, management and operations of ECG and improve the delivery of power to end users to support socio-economic growth in Ghana,” the release, jointly issued by ECG and PDS, indicated.

The Ghanaian government executed the second Millennium Challenge Compact with the U.S. government in August 2014 seeking among other things to increase private sector investment and the productivity and profitability of micro, small, medium and large-scale businesses.

Described as the largest U.S. government-funded transaction of former President Obama’s Power Africa Initiative, the Ghana Power Compact is expected to invest some 498.2 million U.S. dollars to support the transformation of Ghana’s electricity sector and stimulate private investment.

Among the six projects under the compact is the ECG Financial and Operational Turnaround Project (EFOT), which was designed to introduce a private sector player in the management and operations of ECG.

Ghana is also expected to provide a counterpart funding of 37.4 million dollars to bring the total investment to 535.6 million dollars.

The government therefore embarked upon a competitive procurement process under the auspices of the Millennium Development Authority which resulted in the selection of an acceptable partner, Meralco, to manage, operate, and invest in ECG’s operations for 20 years.

After their successful bid, Meralco, an electric power distribution company in the Philippines proceeded to partner AEnergia SA, an Angolan company, and three Ghanaian companies, to form PDS Ltd.

“PDS will be the electricity service provider in all of ECG’s operational areas in the southern distribution zone of Ghana. The ECG will continue to operate as a Bulk Energy Trader and the asset owner,” the statement explained.

Ghana suffered a crippling power shortage from the middle of 2013 to the end of 2015, which brought economic activities to their lowest ebb. Enditem

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.