ECG to undergo Asset Valuation – Energy Minister

The Electricity Company of Ghana is set to undergo an asset valuation exercise to be conducted by a government appointed technical assessment team.

Making the disclosure, Ghana’s Energy Minister - Boakye Agyarko said the valuation exercise is aimed at helping government to ascertain the total value of assets owned by the ECG, before leasing the company to a private investor through the Private Sector Participation (PSP) programme – an initiative covered by the Ghana Power Compact.

Speaking at the inauguration of an eight-member Board of Directors for the ECG, Mr. Agyarko said: “a project is currently underway for a technical and condition assessment of ECG’s assets”.

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He noted that “there are very urgent issues that the board must tackle immediately after the inauguration.  Under the concession arrangement, the assets of ECG will be leased to a private investor to manage, operate and invest for a period of 20 years”.

Furthermore, “the concessionaire is expected to pay for the use of ECG’s assets. It is, therefore, imperative that ECG updates and hands over a credible list of assets to the concessionaire.”

He expressed confidence that the board will navigate ECG onto the path of financial and operational turnaround in the shortest possible time."

The proposed ECG privatization is expected to result in loss of jobs although the government has repeatedly assured the workers that they will not be affected by the change.

Reiterating the assurance of government on job security, Chairman of the new ECG board, Keli Gadzekpo said government is aware of the concerns of the workers and it would engage them to find common ground.