Energy Minister Peter Amewu has disclosed that the 20years contract with the new managers of the Electricity Company of Ghana, ECG, will be reviewed after 5years into the deal.
According to Peter Amewu, the module to be used by the new managers of ECG, Power Distribution Services is expected to greatly improve the finances of the company.
Speaking to Citi FM, he said after 5years of their operation government will review their work to assess the financial turnaround of ECG. Government officially handed over the operations of the state-owned facility to PDS last week.
PDS is expected to turn around the operations of the company to ensure profitability. In addition, the new management will improve access to electricity while cutting down on waste in the system to block all leakages that drain the financials of ECG.
Explaining the work of both ECG and PDS in the new contract, Peter Amewu said: ” ECG as you are all aware is a strategic partner in this relationship and will be responsible for the bulk purchase. ECG will buy power from the generators and will now sell. Previously they sold to various consumers, now ECG will sell to one bulk consumer which is the new PDS coming in. PDS will work along the distribution supply chain to achieve the end value result.”
Meanwhile, Power Distribution Service Ltd (PSD) on February 27, 2019, officially took over the Electricity Company of Ghana.
Planned turnaround of ECG
Power Distribution Services is expected to invest over ¢500 million in ECG, and has promised a massive turnaround of the company
Ghana signed the Power Compact Agreement with the United States of America acting through the Millennium Challenge Corporation (MCC), an independent United States government agency, on the sidelines of the US Africa Leaders’ Summit in Washington DC on August 5, 2014