Power distribution utility
Electricity Towers

In West Africa, Ghanian non-profit organisation Private Enterprise Federation (PEF) supports the recent announcement by director of the Millennium Development Authority (MiDA), Mawuli Rockson, to franchise the Electricity Company of Ghana (ECG).

Last week, during a mining and power conference held in Accra, Rockson said the move to franchise the company would provide the needed support and resources to revamp the power sector and end the energy crisis in the country.

Intervention at ECG operations

On the same note, Nana Osei Bonsu CEO at PEF has expressed his support for the development that will enable the private sector to intervene in the operations of ECG.

According to news agency, Footprint2africa, Bonsu highlighted that the regulations of the Millennium Challenge Compact states that ECG should be released to a private company for about 25 years.

He added that this time frame would allow other private entities to enter the distribution market and bring about competition.

Disgruntled employees at Electricity Company of Ghana

However, since the announcement, employees at ECG have rejected private sector participation in the firm’s operations arguing that this will negatively affect local content as private sector would prefer to source cheaper materials from outside at the expense of the existing Ghanaian suppliers to maximise returns.

“Under Compact II, ECG will not be privatised. All that it is going to happen is ECG’s mandate to distribute power will now be challenged by private sector businesses, which can also be empowered to deliver. This way, competition and efficiency will be brought into [the] power distribution [sector].

“And that is what compact II is all about. It will provide a room for private businesses to do what ECG is doing. And wherever there is competition there is efficiency, so the private sector is going to benefit because this will give them a choice,” Bonsu said.

He further dismissed concerns by some members of the public that the concession arrangement will make power more expensive than usual, encouraging the private sector to take full advantage of this move.

According to PEF’s website, their mandate is to advocate for the private sector to partake in “efficient allocation of the country’s resources”.

 

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