Minister for Energy and Green Transition, John Abdulai Jinapor, has announced that the Technical Committee on Private Sector Participation (PSP) in power distribution has completed its report, which will soon be presented to the Cabinet for consideration and approval.
The report, prepared by a seven-member committee chaired by Mr. Jabesh Amissah Arthur, outlines three strategic options for reforming the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).
These recommendations aim to improve efficiency and sustainability in Ghana’s power distribution sector.
Speaking at the presentation ceremony, Jinapor commended the committee for its diligent work, which involved extensive stakeholder consultations and thorough analysis.
He clarified that the committee’s recommendations do not include the outright sale of ECG or its assets, dispelling rumors and misconceptions about the proposed reforms.
The Minister highlighted the ongoing financial challenges in the power distribution sector, noting that the country currently incurs a monthly deficit of over one billion Cedis, affecting the entire energy supply chain. He emphasized that the proposed reforms are designed to introduce private sector participation, enhance revenue collection, and boost operational efficiency.
Mr Jinapor also assured stakeholders that the government remains committed to a transparent and inclusive process that prioritizes national interests.
He added that the Cabinet’s decision on the report will shape the next phase of implementation, with further stakeholder engagement expected.
In an interaction with the media, Committee Chairman Mr. Jabesh Amissah Arthur revealed that the committee engaged with 285 individuals and 35 organizations during the process.
He noted that the report identifies nine major challenges impeding the performance of the power distribution utilities, categorized under governance issues, operational inefficiencies, and financial constraints.
According to Mr. Amissah Arthur, the committee evaluated three key private sector participation models:
Full Entity Concession: Handing over the entire distribution network to a single private entity.
Multiple Lease Model: Dividing the distribution network into segments, each managed by a different private entity.
Service Franchise Approach: Focusing on low-voltage operations, where private entities manage specific service areas.
