The Millennium Development Authority (MiDA) has justified government’s decision to hand the management of the Electricity Company of Ghana (ECG) to private investors .
Moves are far advanced to transform ECG under concessionary arrangements but many Ghanaians are suspicious of government intentions.
However MiDA insists that local partners will be involved in the process.
[contextly_sidebar id=”zeq1tKelfjyVNjrtBoTeuw8zg0TcZtre”]According to MiDA, promoting local content and participation is important for the growth of Ghana’s private sector.
The Chief Executive Officer of MiDA, Ing. Owura Sarfo, speaking on the Citi Breakfast Show, said the decision to allow private investors to be run ECG is part of efforts to empower the nation’s power distributor.
“…We need to improve the whole value chain particularly in the distribution sector because somehow when you produce power, it’s the distribution company which interfaces with the customers and collects the money back so that the generator can recoup his investments. If we do not address constraints in the distribution sector then the generator cannot feel confident that their investments will be recovered,” he explained.
“I must explain that this compact is not just ECG private sector participation. There are actually six projects and ECG private sector participation is just one activity within a project.”
Ing. Sarfo clarified that the private partners will be involved in the management, operation and investing in ECG but the assets will belong to the ECG.
Click below to listen to the MiDA CEO:
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By: Godwin A. Allotey/citifmonline.com/Ghana