THE POWER Distribution Services (PDS) take-over of the Electricity Company of Ghana (ECG) has been shifted to March 1, 2019.
The take-over was expected to have happened on February 1, 2019, but postponed to February 27.
However, a new date has been announced by the ECG and PDS for the take-over.
It is unclear whether come March 1, 2019, the take-over would happen.
A statement jointly signed by the Managing Director of ECG, Ign. Samuel Boakye-Appiah, and Chairman of PDS, Philip Ayesu, however, insists that the take-over would be effective.
On August 5, 2014, the government of Ghana executed the second Millennium Challenge Compact with the US government with the objective of, inter alia, increasing private sector investment and the productivity and profitability of micro,
small, medium and large scale businesses.
Among the six projects within the second compact is the ECG Financial and Operational Turnaround Project (EFOT), which seeks to introduce a orivate sector oarticipant in the management and operations of ECG.
According to the statement, consequently, the GoG, under the auspices of the Millennium Development Authority, embarked upon a competitive procurement process which resulted in the selection of an acceptable partner to manage, operate and invest in ECG’s operations for 20 years.
The Meralco-led Consortium was declared the winning bidder on April 20, 2018.
Meralco has partnered AEnergia SA, an Angolan company, and three Ghanaian companies–TG Energy Solutions Ghana Limited, Santa Power Limited and GTS Power Limited to form Power Distribution Services Ghana Limited, the statement indicated.
PDS is 51 percent Ghanaian-owned as required by the government of Ghana.
The concessionaire, PDS, is expected to strengthen the governance, management and operations of ECG and improve the delivery of power to end users to support socio-economic growth in Ghana, according to the statement.
It added that “the general public and customers of ECG are, hereby, informed that effective 1st March, 2019, PDS will be the electricity service provider in all of ECG’s operational areas in the southern distribution zone of Ghana.
The ECG will continue to operate as a bulk energy trader and the asset owners.”
BY Melvin Tarlue