The long rumors of a takeover of the distribution wing of the Electricity Company of Ghana that was greeted with postponements has being officially confirmed.
Power Distribution Services Ghana Limited (PDS) led by Meralco, a Filipino Electricity Company, has officially taken over the operations and management of the Electricity Company of Ghana, after being presented with documents covering the transfer by officials of Government of Ghana on Wednesday, 27th February 2019.
Per the power compact transaction agreement, Meralco and its partners will hold 41% stake in ECG while the Ghanaian ownership is 51%.
The PDS is expected to inject about US$580 million into ECG for the five years within the twenty years’ period.
Under the current deal, ECG will remain an assets owner and bulk power supplier while PDS is expected to be responsible for power distribution services.
Speaking at the transfer ceremony, an elated Vice President of Meralco, Mr Ireneo B. Acuna, said the consortium is bringing onboard expertise to turn around the fortunes of ECG and make electricity reliable to Ghanaians.
Ghana signed the Power Compact 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.
Under the Power Compact, six projects are being implemented to address the root causes of the unavailability and unreliability of power in Ghana.
The project includes ECG Financial and Operational Turnaround Project, NEDCo Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, and Access Project.
The rest are Power Generation Sector Improvement Project, and Energy Efficiency and Demand Side Management Project.
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 Ltd. (PDS), which is 51% Ghanaian-owned as required by the Government of Ghana.Electricity Company of Ghana LTD
The takeover is expected to last up-to 2035 at which point the distribution is hopefully to be returned back or as the future may hold.
If the losses remain 25%, the power tends to continue to increase, the technical drive to change equipment remains unchanged; then it is better we take over equipment and running at the same level.John Peter Amewu (Energy Minister of The Republic of Ghana)
Customers wait to see the impact this project brings; whether positive or negative, they wait anxiously.