ECG Not Up for Sale, But Private Sector Participation Needed to Reduce Losses - John Jinapor

Tema, Ghana - 21 Feb, 2025 - Energy Minister John Jinapor has categorically denied rumors that the government plans to sell the Electricity Company of Ghana (ECG). Instead, Jinapor emphasized that the government is seeking private sector participation to boost efficiency and financial sustainability.

This move aims to reduce losses, increase revenue, and enable the company to pay its debts, including a $75 million bill to N-Gas.

Jinapor highlighted the financial strain caused by inefficiencies in the energy sector, where resources meant for development projects are being redirected to settle debts.

Speaking to the media on the sidelines of a working visit to the West African Gas Pipeline Company Station in Tema, he noted that the Minister of Finance should not have to allocate taxpayers' money to pay off these debts, which could have been used for other vital projects like roads, hospitals, and infrastructure development.

To achieve its goals, the government has inaugurated a technical committee to draft a framework for the partial privatization of ECG. This initiative aims to enhance operational efficiency and improve service delivery within the utility provider.

“The news items, the publication and the commentary by some people who should know better that we are selling ECG. It’s not true; it will not be sold, but we want some private sector participation to bring about the high level of efficiency, reduce the losses, increase the revenue base so that we can pay for some of these bills we are talking about,” Mr. Jinapor stated.

“The Minister of Finance under normal circumstances should not be taking the taxpayers’ money which could have been used for other development projects to pay WAPCo. But today we have to squeeze and take money from the budget to pay N-Gas for this $75 million. That could have been used for other developmental projects such as roads, hospitals and other infrastructure projects,” he noted.

The government maintains that reforms are necessary to sustain the energy sector without compromising public interest.

Source: Lead News Online