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Business News of Wednesday, 5 May 2021


MCC did not impose ECG privatisation on Ghana – Mahmoud Bah

Government's move to privatise ECG foiled over various 'illegalities' Government's move to privatise ECG foiled over various 'illegalities'

Acting Chief Executive Officer of the Millennium Challenge Corporation (MCC) Mahmoud Bah, has clarified that his outfit did not impose the privatisation of the Electricity Company of Ghana (ECG) on the government of Ghana.

According to him, the MCC in its compact agreement component had a clause that was meant to implement a self-sustaining efficiency of the ECG as proposed by Government of Ghana, but that transaction simply did not pan out.

Providing updates at a press conference on developmental projects and climate change issues, Mahmoud Bah explained; “when it comes to the issue of privatisation, I just want to make some clarifications. We had a component in the compact that was about self-sustaining efficiency of the Electricity Company of Ghana (ECG).”

He continued, “That transaction didn’t pan out, but our approach was not to impose a privatization; it was to propose whatever method the Government of Ghana deemed to be the most appropriate to make ECG the most efficient and effective electricity or utility company.”

“We now have other components in the compact that we are pushing towards the end of this compact and finishing the implementation there, and that is based on strengthening the infrastructure and the management of the southern distribution network, the area in and around Accra.

“We have also expanded access by implementing activities, whether it’s the electrification of markets (and) the electrification of streetlights. These access components are extremely important, especially when we come to women’s participation in the economy,” Bah added.

The Government of Ghana in October 2019 commenced processes to terminate the concession agreement between it and the Power Distribution Service (PDS) after its introduction in March the same year.

The move followed the announcement of the cancellation of the contract by the Minister of Finance, Ken Ofori-Atta after a meeting with officials of the Millennium Challenge Corporation (MCC) over various 'illegalities'.

The Electricity Company of Ghana (ECG) subsequently announced that it had assumed full control of electricity distribution business in the southern part of Ghana.