Energy Minister to submit private sector participation in ECG, NEDCo report to Cabinet

The Minister for Energy and Green Transition, John Abdulai Jinapor, has made an important announcement. The Technical Committee on Private Sector Participation (PSP) in power distribution has finished its report. This report will soon be presented to the Cabinet for approval.

The seven-member committee is chaired by Mr. Jabesh Amissah Arthur. Their report outlines three strategic options for reforming the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo). These recommendations aim to improve efficiency and sustainability in Ghana’s power distribution sector.

During the presentation ceremony, Jinapor praised the committee's hard work. They conducted extensive consultations with stakeholders and performed thorough analyses. He clarified that the recommendations do not suggest selling ECG or its assets, addressing rumors about the reforms.

The Minister pointed out ongoing financial challenges in power distribution. Currently, Ghana incurs a monthly deficit of over one billion Cedis. This deficit affects the entire energy supply chain. The proposed reforms aim to introduce private sector participation, enhance revenue collection, and boost operational efficiency.

Mr. Jinapor assured stakeholders of a transparent process that prioritizes national interests. He mentioned that the Cabinet's decision on the report will guide future implementation phases, with more stakeholder engagement expected.

In a media interaction, Committee Chairman Mr. Jabesh Amissah Arthur shared insights from their process. The committee engaged with 285 individuals and 35 organizations during their work. They identified nine major challenges facing power distribution utilities related to governance issues, operational inefficiencies, and financial constraints.

According to Mr. Amissah Arthur, they evaluated three key models for private sector participation:

1. Full Entity Concession: Handing over the entire network to one private entity.
2. Multiple Lease Model: Dividing the network into segments managed by different entities.
3. Service Franchise Approach: Focusing on low-voltage operations managed by private entities in specific areas.