Ghana’s Energy Minister, John Jinapor, has categorically denied rumors that the government plans to sell the Electricity Company of Ghana (ECG), a state-owned power distributor.
Speaking on the sidelines of a working visit to the West African Gas Pipeline Company Station in Tema, Jinapor emphasized that ECG will not be sold, but the government is seeking private sector participation to boost efficiency and financial sustainability.
“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,” Jinapor stated.
Jinapor highlighted the financial strain caused by inefficiencies in the energy sector, where resources meant for development projects are being redirected to settle debts owed to energy suppliers, such as the West African Gas Pipeline Company (WAPCo) and N-Gas.
He noted that the Minister of Finance is having to allocate funds from the budget to pay N-Gas $75 million, which could have been used for other developmental projects.
“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,” Jinapor said.
The government is committed to improving ECG’s performance by involving the private sector to ensure efficiency, reduce financial losses, and increase revenue. This move comes as Ghana’s energy sector faces challenges, including debts and financial viability concerns.