The Ghanaian Ministry of Energy has made the strategic decision to privatise the state-run power utility, the Electricity Company of Ghana (ECG), as a solution to end the continuous power struggles, The Africa Report said.
The ministry has conducted various meetings recently to discuss the most beneficial classification of the sector.
Frank Ocran, Chairman of the Stakeholders Consultation Committee on Energy said that ‘Government is considering concession or partial privatization of power utility, Electricity Company of Ghana (ECG)’.
Having to reduce industry power consumption earlier this month, coupled with the restructuring of the ministry, this overdue decision comes at a pivotal time for the country – Government can no longer afford to fund the operations of ECG.
Sulemana Abubakari, top official in the Power Distribution division said that no concrete agreements were currently in place.
‘We have not signed a contract yet, we are soliciting views to take a decision and there will be international competitive bidding’, Abubakari said.
Officials also said the company’s assets would still be state owned under the arrangement when the deal is concluded.
Ghana has had a 2-5% drop in its annual GDP due to the problematic power supply. According to the International Finance Corporation, ECG revenue runs at a deficit of US$350 million annually.