MCA compact two will transform ECG - MiDA CEO

The Chief Executive Office of the Millennium Development Authority (MiDA), Ing. Owura K. Sarfo has said that the compact two of the Millennium Challenge Account between the Government of Ghana and the Millennium Challenge Corporation of the United States of America is a Power Compact is aimed at transforming ECG in terms of technology and efficiency in power distribution to become a stronger company able to meet the current and future needs of Ghanaian families and businesses.

Ing. Owura Sarfo made this known on Wednesday, October 7, 2015 at a press conference at the World Trade Centre in Accra.

“The Government of Ghana, acting through the Ministry of Power, Electricity Company of Ghana (ECG) and the Millennium Development Authority (MiDA) has invited expression of interest from local and international companies to identify a qualified private sector partner to invest in and operate the distribution business of ECG through a public-private partnership”, the Chief Executive Officer revealed.

He said that ECG is critical for our nation’s growth and development, a cornerstone of the energy sector, which is why this Government of Ghana initiative is so important.

“The Request for Expression of Interest, which has been publicized in local and international media, is a demonstration of government’s commitment to engage in a transparent and competitive process to attract and select a proven private partner to operate ECG through a concession agreement”, Ing. Owura K. Sarfo explained.

The process is being managed by MiDA, the agency appointed by the Government of Ghana to implement the Ghana Power Compact.

“MiDA and the Government of Ghana are confident that a qualified and experienced partner will be selected to invest in ECG and bring on board the needed technical skills to help ECG meet the growing demand for energy in Ghana and unlock the potential in other parts of the power system, including power generation”, Ing. Sarfo added.

He concluded that, inviting private sector participation in Ghana’s power distribution sector has been on the agenda of the Government of Ghana since the 1990s, and the placement of the RfEol follows broad stakeholder consultations and detailed technical, legal and financial studies. MiDA is committed to a collaborative approach to undertaking its responsibilities and will ensure a transparent process in selecting the right operating partner to make ECG a leader in energy distribution on the African continent, while remaining a Ghanaian owned assets.

The Government of Ghana signed the Ghana Power Compact with the Millennium Challenge Corporation (MCC), an independent United States government foreign aid agency on August 5, 2014. The Power Compact provides Ghana a grant of $498,200,000 to improve the performance of Ghana’s power sector to unlock the country’s economic potential, create jobs and reduce poverty.

The major project under the Ghana Power Compact is the Electricity Company of Ghana (ECG) Financial and Operational Turnaround Project, which is designed to transform ECG into an efficient and financially strong institution through private sector participation (PSP). About $300 million of the MCC grant is being invested in ECG, and the Government of Ghana is committing at least $37.4million of its own money. The project seeks to bring about PSP in investments into, as well as the management and operation of the ECG through a concession arrangement.

Present at the press conference included: Ing. Julius K. Kpekpena – COO of MiDA; Ing. Boakye Appiah-Director of ECG; Dr. Asamoah Baah-Director of the Ministry of Finance, Representatives from ECG, Ministry of Power, MCC, Board of Directors of MiDA, Office of the President and other stakeholders.