The Electricity Company of Ghana (ECG) have begun consultations with stakeholders regarding options available in the wake of reports of privatization under the Second Millennium Challenge Compact.
The options have been pruned down to two: a concession and partial privatization.
Under the former, the state will enter into a contract with a private partner, which will have exclusive rights to “operate, maintain and carry out investments in ECG for a given number of years”.
According to a draft proposal intercepted by TV3, the number of years for private sector participation “is typical around 20 to 30 years.”
Among the demerits of this option is the high possibility of job losses.
The second option of partial privatization would see the sale of shares in the Company to a strategic investor with “the proven technical, financial capacity and track record abilities similar in size to ECG, to carry out electricity distribution and supply activities.”
This option will also record job losses.
Government have, on several occasions, denied the privatization of the country’s major power distribution company and has assured staff that all will be done to protect their interest.
A recent reassignment of the Managing Director of the Company, Reverend William Hutton Mensah, by President John Dramani Mahama sparked demonstrations at some regional offices of the Company.
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