As part of its efforts of building a robust power sector, the Ministry of Energy has taken a judicious step by inaugurating Board of Directors for Electricity Company of Ghana.
The Board is expected to provide the right leadership, the needed incentives and innovations to improve the general performance of the company especially in revenue collection and reduction in system loses.
Speaking at the inauguration ceremony in Accra, the Minister for Energy, Hon .Boakye K. Agyarko, noted that ECG has been challenged on numerous fronts including, deficiencies in corporate governance, management operations and finance.
This he said, primarily the Board will offer the necessary strategic directions for ECG to fulfill its mandate “to provide quality, safe and reliable electricity services to support the economic growth and development of Ghana”.
According to him, empowered ECG can power the economy through provision of adequate, reliable and affordable supply electricity to meet the needs of domestic, commercial and industrial users.
The Board will navigate ECG unto the path f financial and operational turnaround in the shortest possible time.
According to the Sector Minister, the Board also has onerous responsibility imposed on them to guide ECG through the Private Sector Participation Transactions process under the Ghana Power Compact.
“As you are aware, Ghana has obtained a grant of USD 498.2 million from the Millennium Challenge Corporation (MCC), a United States Government foreign aid agency for disbursement over a five -year period.
The funds are focused exclusively for investments in the Power Sector. A major aspect of the Compact is the ECG Financial and Operational Turnaround (EFOT) project. It seeks to strengthen the governance and management of ECG by bringing in an acceptable ECG private Sector Participants (PSP) under a 20 year concession agreement.
Millennium Development Authority (MiDA) is the implementing Agency. This PSP in ECG transaction is very complex and comes along with certain risks”, he explained.
Adding that, under the concession agreement, the assets of ECG will be leased to a private investor to manage, operate and invest in for a period of 20 years. ECG will remain the Asset Owners on behalf of the Government of Ghana.
The Sector Minister stated that the restructured ECG is expected to be a bulk power trader.
This he said, to the extent that there is excess generation capacity, the restructured ECG will have to explore both local and international markets to sell the excess power.
The Chairman of the board Mr. Keli Gadzekpo gave an assurance that the board will work assiduously to revamp ECG.
Adding that, the board would ensure that due processes were followed to address challenges that would arise in the new paradigm, especially on issues concerning the welfare of the 6,500 staff of ECG.
By : Isaac Kofi Dzokpo/NewsGhana.com.Gh