Private sector participation crucial in power distribution – Jinapor

Energy Minister-designate John Abdulai Jinapor has highlighted the need for private sector involvement in the operations of the Electricity Company of Ghana (ECG) to enhance efficiency and improve power distribution.

Speaking during his vetting by Parliament’s Appointments Committee, Mr. Jinapor stressed the importance of a structured and transparent process to achieve this goal.

“We believe there should be private sector participation. What we intend to do is to form a 7-member committee, chaired by technical experts, legal aspects, financial experts, and some industry players, and even somebody from the consumer side,” Mr. Jinapor stated on Monday, January 13.

He outlined the committee’s mandate to design a comprehensive framework based on global best practices, evaluating whether a concession model or full privatization would be most suitable. He also assured that the process would be devoid of political interference.

“We will stay off as politicians and let them develop a framework in a transparent, open, and frank manner. Once we get the buy-in of Ghanaians, we can set standards using a Request for Proposal (RFP) or competitive tender process,” he added.

The Minister-designate made it clear that the government would not resort to sole-sourcing for private sector participation in ECG operations.

Instead, a competitive process with a strong emphasis on local content and Key Performance Indicators (KPIs) would be adopted.

“Our approach ensures a clear path forward, incorporating private sector expertise while safeguarding national interests,” he explained.

He also indicated that the energy sector debt has ballooned to $3 billion.