The Government of Ghana has unveiled a strategic initiative to enhance the efficiency and accountability of the electricity sector by introducing private sector participation in power distribution. This approach aims to modernise operations, reduce system losses, and improve service delivery across the nation.
Competitive Bidding Process
Private firms interested in managing power distribution in designated regions will undergo a rigorous selection process. This process includes a prequalification phase and the submission of detailed proposals. To ensure commitment and performance, participating firms will be required to provide financial guarantees.
Continued Role of ECG
The Electricity Company of Ghana (ECG) will maintain its role in supplying bulk power. Private concessionaires will compensate ECG based on actual power consumed. The Public Utilities Regulatory Commission (PURC) will continue to oversee pricing and tariff structures to ensure affordability and fairness for consumers.
Eligibility Criteria
To qualify for participation, firms must demonstrate strong financial capacity and proven technical expertise. The selection process will prioritise local content and adherence to Key Performance Indicators (KPIs) to ensure accountability and transparency.
Ministerial Assurance
Energy Minister John Abdulai Jinapor has emphasised that ECG will remain a state-owned entity. "ECG will remain the holding company. We are not selling it. We are making it better," he affirmed. This initiative seeks to leverage private sector efficiency while retaining public ownership of critical infrastructure.
Stakeholder Engagement
A seven-member committee, comprising technical experts, legal advisors, financial analysts, industry stakeholders, and a consumer representative, has been established to design a comprehensive framework for private sector participation. The committee's mandate includes evaluating global best practices to determine the most suitable model—be it a concession or full privatisation.
Minister Jinapor has assured the public that the process will be transparent, inclusive, and free from political interference. "We will stay off as politicians and let them develop a framework in a transparent, open, and frank manner," he stated.
Conclusion
This initiative represents a balanced approach to modernising Ghana's power distribution sector. By combining public ownership with private sector expertise, the government aims to achieve a more efficient, financially sustainable, and customer-focused electricity distribution system.
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