John Jinapor, the newly sworn-in Minister for Energy and Green Transition, has inaugurated a seven-member committee tasked with advising the government on a roadmap for the privatization of the Electricity Company of Ghana (ECG).
The committee, chaired by Jabesh Amissah-Arthur, former CEO of the Bui Power Authority, will also address issues surrounding the Northern Electricity Distribution Company (NEDCo), with a focus on creating a financially sustainable and efficient power distribution system.
Speaking after the inauguration, Mr. Jinapor emphasized that the government’s intention is not to sell ECG outright but to involve the private sector in its operations.
“Let me assure the nation that we have not decided to sell ECG.
“Ours is to ensure that we get the private sector involved while emphasizing local participation.”
John Jinapor, Minister for Energy and Green Transition
The minister also pointed out that the privatization process would be an essential step toward improving the sector’s financial stability.
The goal is to create a model that would allow the ECG to operate more efficiently, while reducing the significant losses that have plagued the company in recent years.
The move comes in the wake of a recent financial report by PricewaterhouseCoopers (PwC), which painted a troubling picture of the financial health of ECG.
According to the PwC report, ECG recorded a net loss of 5.96 billion cedis in the last fiscal year, a development that has raised alarm across Ghana’s energy sector.
The report also revealed that the company is burdened with a staggering debt of 47.2 billion cedis. These financial challenges have contributed to widespread inefficiencies, frequent power outages, and a lack of investor confidence in the power sector.
The inauguration marks one of Jinapor’s first major actions since assuming office, signaling the government’s commitment to overhauling the power distribution sector.
Committee’s Mandate and Vision
The committee’s primary task is to devise a privatization model that ensures the sustainable operation of ECG and NEDCo. The committee has been given a tight deadline of one month to submit its recommendations, which will focus on developing a financially viable framework for privatization.
Minister Jinapor underscored the need for the new model to be tailored to Ghana’s specific needs, ensuring both financial sustainability and operational efficiency.
At the inauguration, Jinapor specifically charged the committee to prioritize local content participation.
“We have always advocated for local content, so in your work always have it in mind that local content participation ought to have a place in ECG’s operation.”
John Jinapor, Minister for Energy and Green Transition
This directive underscores the government’s commitment to ensuring that Ghanaians have a stake in the power sector, particularly as privatization proceeds.
Jinapor also highlighted the importance of balancing the involvement of foreign investors with the inclusion of local businesses and professionals in the privatization framework.
The Minister also voiced concerns about the debts that ECG has accumulated, particularly through its procurement processes.
These procurement practices have contributed to the company’s financial woes, and Jinapor urged the committee to address these issues in their recommendations.
The establishment of the committee and its mandate to create a roadmap for ECG’s privatization represents a critical moment in the evolution of Ghana’s power sector.
The success of this initiative could set the stage for a more efficient, sustainable, and customer-focused energy industry, benefiting the Ghanaian economy and its citizens.
As the committee works to develop its recommendations, its efforts will be closely watched by various stakeholders, including the government, industry experts, private investors, and the public.
Minister Jinapor’s call for transparency, accountability, and local content participation highlights the importance of creating an inclusive model that takes into account the needs and concerns of all Ghanaians.
READ ALSO: Prof. Asare Warns Against Undervaluing State Land Sales
