Former president John Agyekum Kufuor has supported government’s decision to privatise state-owned power distributor, the Electricity Company of Ghana (ECG).
The Ghana government has selected the International Financial Corporation (IFC) of the World Bank Group as transaction advisor.
The IFC is expected to produce the tender document for a concessionaire to be chosen on international competitive basis and that is expected to be done by close of 2015.
“We are expecting that the process, hopefully, will be completed by the end of the year,” CEO of Millennium Development Authority (MiDA), Owura Kwaku Sarfo, said.
Kufuor observed that the “private sector is the engine of growth” and once it will “make the ECG efficient, especially on competitive basis” the decision has his blessings.
“The economy and society are growing and government can’t do it all,” Kufuor told Joy FM.
“The government establishes the framework and private sector is critical to the economy.” The ECG takeover is expected to last for a possible 20-year period. It will be recalled that in February, 2015, government of Ghana is looking for a transaction advisor for the privatisation of ECG.
The decision to privatise ECG follows a detailed research and analysis into the various options being considered by the Mahama-led administration in the management of ECG.
The report titled - Ghana Power Compact Private Sector Participation Options Study for ECG – was prepared by the same International Finance Corporation (IFC) and was commissioned by the government of Ghana represented by the Ministry of Energy, the Millennium Development Corporation and the World Bank.