The Chief Executive Officer (CEO) of the Millennium Development Authority (MiDA), Owura Kweku Sarfo, announced this here Wednesday.
Sarfo said the concession agreement, which is expected to be for between 20 and 30 years, would deal with the distribution side challenges which had contributed to the energy crisis in the country.
Speaking at a press briefing here, Sarfo explained that the concession management contract with a private sector player was the last step for the country to access the United States Government?s second Millennium Challenge Account (MCA II).
The Ghana Compact II for 498.2 million U.S. dollars signed last year between the US and Ghana followed the successful implementation of the first Compact of 547.9 million- dollar grant between 2007 and 2012.
The second compact, also known as the Power Compact, is aimed at helping Ghana to reform its power sector to attract the needed investment to make the country self-sufficient in energy.
It is also a critical part of Power Africa, the U.S. Government?s initiative to double access to power on the African continent.
?It will in the medium-term address the root cause of Dumsor? (Ghanaian coinage for erratic power supply) resulting from the crippling generation and distribution shortfall in the country,? Sarfo stated.
He added: ?We can play a critical role in banishing ?Dumsor? from the power landscape in Ghana in the medium-term so that it does not rear its ugly head in the future again.?
There are six primary projects under the concession management deal, including the ECG Financial Operation Turn-around; Northern Electricity Company (NEDCo); Regulatory Strengthening and Capacity Building Project; and Access to Power.
The rest are Power Generation Sector Improvement Project and the Energy Efficiency and Demand Side Management Project.
The MCA has made ?an acceptable private sector participation in ECG?s turn-around? a precondition for Ghana to access the second compact, with clearly laid-down conditions to be fulfilled by the would-be manager.
The Tender for bids will be announced by the end of the year while receiving of tender documents would close by May/June, 2016.
Kofi Asamoah-Baah, an economist and Technical Advisor to the Ministry of Finance, noted that the current power challenges could not be solved through annual budgetary allocations due to the huge capital needed.
?The decision has been made for the concession but what goes into it is still subject to negotiation between the government and the companies,? Asamoah, who represented the Minister of Finance, emphasized.
Boakye Appiah, Director for Network Projects at ECG, said there was already some private sector participation in the operations, including one with a Chinese firm which is refinancing a project of reducing revenue losses in the company. Enditem.