Mahama Government To Consider Privatisation Of ECG Amid Power Challenges

• President John Mahama is considering possibly privatising the Electricity Company of Ghana
• The government is considering this measure to address current inefficiencies in power distribution
• Mahama expressed these thoughts in his meeting with a World Bank delegation on January 8, 2025

President John Mahama has put forward the possibility of the Electricity Company of Ghana (ECG) being privatised.

This proposed measure would be part of efforts to address inefficiencies in the entity's power distribution.

Citi News reported that the president believes involving the private sector could help resolve operational inefficiencies the ECG is currently facing.

Mahama expressed these thoughts during a meeting with a World Bank delegation on Wednesday, January 8, 2025.

He also reflected on Ghana’s past participation in the Millennium Challenge Corporation (MCC) Compact while looking ahead.

“If we don’t fix the Electricity Company of Ghana, we will continue to have a major problem with our whole power value chain. So, going ahead with privatising the last point of electricity distribution, bringing in private sector efficiency is something that we want to take up again. We want to speak with the World Bank to get the expertise to be able to do that.”

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About $90 million needed to support plants

Asaase News reported that the Ghana Grid Company has said the government urgently requires nearly $90 million to secure alternative fuel sources to sustain thermal power generation in Tema.

This follows a disruption in natural gas supply caused by a maintenance exercise conducted by the West African Gas Pipeline Company (WAPCo).

The company recommended revising maintenance schedules, securing alternative fuel sources, and considering load-shedding, also known as dumsor.

The maintenance in question was initially scheduled for October 2024 but was deferred to January 2025 by the Akufo-Addo government to allow for the procurement of alternative fuels.

The government has set up a technical committee to address the power concerns with directives to present a comprehensive roadmap.

Acting Spokesperson at the Presidency, Felix Ofosu Kwakye, gave assurances that decisive steps are being taken to resolve the crisis.

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This was after a figure in the National Democratic Congress, John Jinapor claimed the Akufo-Addo government had only left five hours' worth of fuel for power generation.

Former Energy Minister Herbert Krapa rubbished these claims and urged the newly inaugurated government to focus on effectively managing the power sector instead of complaining.

Dumsor concerns under Akufo-Addo

YEN.com.gh reported that Akufo-Addo's final year as president was marred by an erratic power supply from the Electricity Company of Ghana and the Ghana Grid Company.

Some challenges were attributed to issues at the Ghana National Gas Company’s Gas Processing Plant in Atuabo and maintenance work by the West African Gas Pipeline Company.

Before he left office, Akufo-Addo commissioned a 515MW power plant to address challenges and hoped the $1.2 billion Ghana Bridge Power Project at Kpone would end the crisis.

Proofread by Bruce Douglas, senior copy editor at YEN.com.gh

Source: YEN.com.gh