The Millennium Development Authority (MiDA) says the search for private participation in the management and operation of the Electricity Company of Ghana ECG) is primarily aimed at attracting the much-needed investment in the utility company and not as a result of inefficiency on the part of the power distributor.

The Chief Executive Officer of MiDA, Owura Kwaku Safo, said it was on record that the distribution segment of the power sector required about $200-million investment every year for a number of years, a responsibility the government alone could not shoulder.

Mr Safo said this at a news conference in Accra yesterday to interact with the public on its road map and some achievements that had been chalked up since the second compact, the Ghana Power Compact, was signed in August 2014.

Currently, he said, the transaction advisor was working on the structure of the transaction report which would form the basis for a tender document to invite proposals from interested investors.

Mr Safo noted that local companies with proven track records could participate in the process.

“We urge all interested parties, particularly Ghanaian indigenous companies, to take up the challenge and quickly submit their letters to express their interest in this venture,” he added.

He said the Ghana Compact two programme, which was also called the Power Compact, was to be a major catalyst that would contribute to the development efforts of Ghana.

That, he said, was because it would, in the medium term, address the root cause of power outages in the country which had had such a debilitating effect on the economy.

“We at MiDA are excited that through the interventions to be initiated under the compact two programme, we can play a critical role in banishing the frequent power outages from the power landscape in Ghana in the medium term, so that it does not rear its ugly head again in the future,” he said.

He said the second compact, which comes with a $300-million grant, would address six projects that had been identified under the compact.

Source: Graphic

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