Energy Minister John Abdulai Jinapor says any company hoping to manage part of the Electricity Company of Ghana (ECG) under the new concession model must show real muscle, or stay out.
Speaking on Joy News’ PM Express on Wednesday, April 30, Jinapor made it clear that there will be no handouts or sweetheart deals. “If you can’t do that, then don’t apply,” he warned. “You must put down a guarantee or walk away.”
He emphasised that government is not selling ECG, despite public speculation.
“We are not selling ECG, and let me put this on record so that decision has now been made. Far from that,” he said. “Ignore the misinformation. Cabinet has chosen the option of concession.”
Under the plan, ECG will remain a holding company while splitting its operations into zones. Private firms will manage specific geographic areas under strict terms.
“ECG will divide its operational areas into four, maybe three,” Jinapor explained.
“Roland Company, for instance, will take one. Yours is to manage that sector or that geographical area.”
Jinapor said ECG will sell power in bulk to these private concessionaires, who must then collect payment from consumers and pay ECG.
“At the end of the month, we check how much power came to you — just hypothetically, maybe 20 megawatts. We check the gigawatt hours you consumed. And we say this is the price, pay ECG.”
How do they collect the money? “That is your cup of tea,” he said bluntly.
The Minister said firms will not be allowed to join the process casually.
“We’re gonna have what you call RFQ — request for qualification — so that we sieve off some companies and have top-notch companies through a competitive process,” he said. “Then we go to what we call RFP — request for proposal.”
He stressed that only firms with proven technical and financial strength will be considered. “That company must have capacity, which includes financial capacity, technical capacity — all the issues we are talking about,” Jinapor said.
And there will be no backdoor deals. “It’s not like go and get some friends to come and take a contract,” he said. “We’re taking a transaction advisor. Competitive bidding. Competitive process. So they will get a very good company.”
He laid out the revenue model clearly.
“What you are going to do is buy bulk power from ECG and sell it. So ECG is guaranteed their money. It is the private player’s job to go and sell what they pick. ECG needn’t bother about how you collect the money.”
He said the system will be monitored closely by the Public Utilities Regulatory Commission (PURC). “ECG’s concern should be that I give you X amount of power. PURC’s is that this is the price we’ve guaranteed for you. You can’t charge above that,” Jinapor said.
He added that all collected funds will go into a special account. “You must sell that power, collect the money and put it in a dedicated account. ECG takes its share. Whatever is left is yours.”
But if a company cannot guarantee payment? “Don’t apply,” he repeated. “Put down a guarantee or walk away.”
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