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TRANSFER OF ECG ASSETS AND OPERATIONS TO PDS GHANA LTD
PDS, has secured its business operating licenses to aid the takeover of some assets and operations of the ECG. Effective March, 1 2019, PDS becomes the electricity service provider in all of ECG’s operational areas in the Southern Distribution Zone of Ghana. The ECG will continue to operate as a Bulk Energy Trader and the Asset Owner. The new arrangement is expected to cut commercial and distribution losses to the barest minimum while delivering improved power services to Ghanaians.
PDS which is a combination of Ghanaian investors and foreign technical partners is to invest some $580million over a period of five years and continue its investment year after year throughout the 20-year period of the concession. Beyond these investments, a larger portion of the Millennium Challenge Corporation (MCC) funding of $535.7million is expected to flow into the power sector.
Senior Minister, Hon.Yaw Osafo Maafo
“Today, just like every worker in ECG, the whole country is full of expectation; expectations borne out of the change-over as we embark on this course,” Senior Minister, Yaw Osafo Maafo stated at the handing over ceremony yesterday.
PDS charged to deliver
The Senior Minister insisted on new approaches, investments, diligence at management and controls and high levels of efficiency. “They must demonstrate better response times when consumer has challenges, and they must understand that we are all ready to support them to succeed. PDS must keep to all its undertakings under the agreement, especially the investment required to turn around the fortunes of the power distribution sector,” he demanded. Mr Maafo drew the attention of the new operator to the fact the ruling New Patriotic Party had promised workers of ECG and Ghanaians quality power which “will be available to anyone who needs it, when they need it and where they need it.” “We informed Ghanaians that in the long run, and based on expected efficiencies, electricity tariffs are expected to stay stable or even drop in real terms, after the initial period, and we also assured them of affordability,” he told PDS.
Minister for Finance, Hon. Ken Ofori Atta
Finance Minister, Mr Ken Ofori Atta noted that the government took the decision to allow private participation in ECG because it wanted to help transform the operations of the power distribution firm.
Prof Yaa Ntiamoa-Baidu, Chairperson of MiDA Board
MiDA committed to success of concession
Board Chairperson of the Millennium Development Authority (MiDA), Prof Yaa Ntiamoa-Baidu expressed optimism on the part of the Authority about “an innovative, impactful and successful operations of the new utility company.” She said “we trust that PDS Ghana Limited will listen to the heartbeat of Ghanaians and prove themselves capable to turn the fortunes of ECG around.” Prof Ntiamoah-Baidu noted that the decision by government to entrust the management of such a vital national asset into the care of PDS had to be reciprocated through improved performances in the delivery of services. MiDA, she assured will not rest on its oars anytime soon, stressing “we have nurtured this transaction on behalf of government and the people of Ghana, and shall ensure the completion of any outstanding matters and give impetus to all agreements signed between Ghana, ECG and PDS.
U.S. Ambassador to Ghana, Stephanie Sullivan
US Envoy to Ghana, Stephanie Sullivan was optimistic the new management deal would help to create more jobs in the Ghanaian economy, giving the assurance “PDS will operate and maintain existing ECG assets and provide sustainability for new MCC-funded assets for the next 20years.” She indicated that the concession had been structured with the interests of Ghana’s present and future at heart, “a clear example of leveraging the private sector as Ghana moves beyond aid.”
As part of government’s own policies, the compact is designed to among others foster private sector participation in ECG, promote retail competition and horizontal unbundling in the company’s service areas, promote regulatory efficacy and reduce government’s financial burden on the power sector.
Government in August 2014 executed the second Millennium Challenge Compact with the US government with the objective of increasing private sector investment and the productivity and profitability of micro, small, medium and large scale businesses.
Among the six projects within the second Compact is the ECG Financial and Operational Turnaround Project (EFOT), which seeks to introduce a private sector participant in the management and operations of ECG. Consequently, government under the auspices of the MiDA embarked upon a competitive procurement process which resulted in the selection of an acceptable partner to manage, operate, and invest in ECG’s operations for 20 years. The Meralco-led Consortium was declared the winning bidder in April, 2018.
Meralco has partnered AEnergia SA, an Angolan company, and three Ghanaian Companies: TG Energy Solutions Ghana Limited, Santa Power Limited and GTS Power Limited, to form Power Distribution Services Ghana Ltd. (PDS), which is 51per cent Ghanaian-owned as required by the Government of Ghana.
The Concessionaire, PDS, is expected to strengthen the Governance, Management and Operations of ECG and improve the delivery of power to end users to support socio-economic growth in Ghana.
Source: thefinderonline.com
Newsletter
- 2nd December, 2019MiDA Newsletter, Vol 3 Issue 2
- 29th March, 2019MiDA Newsletter, Vol 3 Issue 1
- 30th September, 2018MiDA Newsletter, Vol 2 Issue 4
- 29th June, 2018MiDA Newsletter, Vol 2. Issue 3
- 30th March, 2018MiDA Newsletter, Vol. 2 Issue 2
- 29th December, 2017MiDA Newsletter, Vol. 2 Issue 1
- 30th June, 2017MiDA Newsletter, Vol.1 Issue 4
- 16th December, 2016MiDA Newsletter, Vol.1 Issue 3
- 30th June, 2016MiDA Newsletter, Vol.1 Issue 2
- 1st February, 2016MiDA Newsletter, Maiden Edition
Stakeholder Consultations
Workshops
- 22nd March, 2017MiDA/MCC PROCUREMENT GUIDELINES WORKSHOP HELD
- 9th September, 2015SECOND POLICY DECISION MAKERS WORKSHOP FOR PSP TRANSACTION IN ECG
- 1st January, 1970Development and Enforcement of Standards and Labels Activity
- 1st January, 1970Improved Energy Auditing Activity
- 1st January, 1970Education and Public Information Activity
- 1st January, 1970Demand Side Management Infrastructure Activity
