Business News of Saturday, 1 July 2017
The US Government has told Citi Business News everything is on track for the private sector participation in the Electricity Company of Ghana (ECG) under the Power Compact II agreement.
Currently, the six shortlisted companies are evaluating the assets of the ECG to guide further decision making on the move.
Ghana is in an agreement with the Millennium Challenge Corporation (MCC) of the USA for a funding support of about 500 million dollars to turnaround the fortunes of the power distribution company.
The US Ambassador to Ghana, Robert Jackson who was speaking to Citi Business News on the progress of work on the PSP also said all the parties are awaiting the outcome of the initial inspection by the concessionaires.
“Now that all the pieces are in place, we are waiting for the shortlisted companies to start to analyse the terms and methodologies and there will be another meeting between the government, ECG and the six potential concessionaires. But everything is on track,” Mr. Jackson asserted.
The Millennium Development Authority (MiDA) earlier in May, told Citi Business News the authority has engaged the six concessionaires participating in the ECG Private Sector agreement.
The six concessionaires had met to discuss the 51 percent stake to be controlled by Ghanaian investors in the ECG PSP project under the Power Compact Two, with the Millennium Challenge Corporation.
The Chief Executive Officer of MiDA, Ingineer Owura Safo stated that the concessionaires will soon undertake an inspection of ECG installations.
“We are going to have a one-on-one meeting with them because each of them will have their own issues. We need to talk to them to explain the process for them. The process is very expensive for them. We need to clarify the process for them. After the process is completed, one concessionaire will be selected,” he said.
Ing. Owura stated that the process will include an inspection of the ECG plants and installations. Dispelling the misconception that the PSP is a privatization, Ing. Owura stated that the ECG will not be sold.
“The ECG Financial and Operational Turnaround Project aims to strengthen the governance and management of ECG by bringing in an acceptable concessionaire to make investments designed to reduce technical, commercial, and collection losses and improve service quality,” he stressed.