In a bid to clarify growing concerns about the potential privatization of the Electricity Company of Ghana (ECG), President John Mahama has issued a reassuring statement, affirming that his government has no intention of selling off the state-owned power distributor.
Addressing the May Day celebration at Black Star Square, President Mahama emphasized that his administration’s focus is on exploring public-private collaborations to inject efficiency into the downstream electricity distribution system.
“The ECG has been brought to its knees by a culture of poor governance over the last eight years, with a debt of 68 billion cedis and rising,” President Mahama noted. “If we do not do something drastic, our whole power sector will collapse. We can only bring down power tariffs if we improve efficiency in the distribution of power.”
To address this challenge, President Mahama highlighted the potential benefits of public-private partnerships, citing a successful model from his previous term in office.
“When I was President, in the free zones, a private company Enclave Power was given the right of metering and billing in the free zone. ECG provided them with bulk supply of power. They pay ECG, and until today, they still pay ECG monthly on time. Their billing and collection in the free zones enclave is 99% of revenue collected,” he explained.
This example, according to President Mahama, demonstrates that partnerships with private entities can help improve efficiency without necessitating the transfer of ownership.
“I am sure that we can make our electricity distribution more effective through public-private partnerships, but I can assure you that electricity as an institution will not be privatised,” Mahama emphasized.
He said by exploring collaborative solutions, his government aims to stabilize the power sector, reduce debt, and ultimately bring down power tariffs.
With this assurance, Ghanaians can rest easy knowing that their electricity supply will remain under state control, while still benefiting from the efficiency gains that public-private partnerships can bring
, President John Mahama){kind=link}