Private sector participation key to resolving ECG’s debts – Nana Amoasi VII

Nana Amoasi VII, Executive Director of the Institute for Energy Security (IES), has urged the government to adopt a sustainable approach. He believes this includes allowing private investment in the Electricity Company of Ghana (ECG).

His comments come after the Ministry of Energy revealed an urgent need for GHS 1.1 billion. This funding is necessary to procure liquid fuel for power generation. Current fuel reserves are expected to last only 2.6 days.

Energy Minister John Abdulai Jinapor announced new budget requirements on May 15. All Ministries, Departments, and Agencies (MDAs) must now budget for their electricity consumption. Some critical institutions will receive exemptions.

Minister Jinapor emphasized that MDAs should take responsibility for their electricity bills. In an interview with Citi News, Nana Amoasi VII highlighted the need for private sector involvement. He stated that private funding could help fix long-standing inefficiencies in ECG.

He noted that there have been no significant investments in ECG over the past five years. This lack of investment affects transformers, capacitors, and lines, which all need upgrades. He questioned whether the government can provide necessary funding.

However, increased private sector involvement faces opposition from the Public Utilities Workers Union. General Secretary Timothy Nyame expressed concerns about potential higher costs for consumers. He questioned why efficiency improvements would be outsourced when management is already in place at ECG.

Nyame argued that it undermines the authority of ECG's managing director to seek outside help after appointing them with clear goals. The debate continues amid financial pressures and a pressing need for stable electricity supply across Ghana.