Make profit or we will take over the management of ECG – Energy Minister tells new power managers

Power Distribution Services has taken over the management and operations of the ECG.
At the official handing over ceremony, the Energy Minister said PDS must make profit as managers of ECG.
John Peter Amewu said if PDS does not meet their targets the government of Ghana will take back the management of ECG.

Ghana’s Energy Minister John Peter Amewu has said that the government will reassume the operations of the Electricity Company of Ghana (ECG) if the new managers, Power Distribution Services (PDS) fail to meet their key performance indicators.

He was speaking at the handing over ceremony in Accra.

PDS is taking over the management and operations of the ECG after Meralco consortium, a major shareholder in PDS won a bid to manage the ECG.

Mr Amewu said the government will monitor the operations of PDS closely to ensure performance delivery.

“I wish to ensure the concessionaire, PDS that I am going to keep my eagle eye on the key performance indicators set out on the transaction agreement, and for some reason all those challenges enumerated above on any single occasion during the that you are expected to deliver effective service will come undone, an exit to the door will clearly be an option.”

As part of their KPIs, Mr Amewu said PDS is expected to improve the operations of ECG and return the company to profit in a short period.

PDS has taken over Ghana’s power supply operations for $91 million. This means that PDS will be the new owners and directors of the company.

The distribution by the PDS will commence in the Southern Distribution Zone of Ghana.

The PDS will also be expected to improve revenue collection, cut cost, and maintain stable power for two decades while injecting over 500 million dollars into the power distributor.

Meanwhile, the Finance Minister Ken Ofori-Atta said was hopeful the government subvention in ECG will gradually reduce.

“We expect that this agreement will slowly remove the government support for ECG to make the company strong enough to stand on its own”

On his part, the Vice President of Meralco Philippines, Ireneo Acuna said that the revision of shares from 20 percent local participation to 51 percent is a laudable initiative taken by the Nana Addo government.

“When the second bidding conference was done and the government said they want to increase the local participants, we were the only company that was excited because we believe in that,” Mr. Acuna said.

PDS is a consortium of Ghanaian and two foreign companies. The Ghanaian component consists of TG Energy Solutions with 28 percent shares, Santa Power Ltd with 13 percent shares, and GTS Power with 10 percent shares. The others are Manila Electricity Company with 30 percent shares from the Philippines shares and Aenergia from Angola with 19.