Cabinet has given the green light for private sector participation in the operations of the Electricity Company of Ghana, ECG.

Deputy Power Minister John Jinapor who disclosed this to JOYNEWS Thursday explained that the approval opens the door for the injection of private sector capital, skills training and technological know-how into the company.

The deputy minister insists the invitation for private sector participation “does not mean we are selling ECG”.

He said government is now looking for a transaction advisor to help select the best partner.

“All the properties of ECG will continue to remain as it is. What we are looking for is the skill and innovative ways that can make ECG much more efficient”.

Meanwhile, Director of Operations of the energy think –tank, Africa Center for Energy Policy, Ben Boakye, says securing a management partner who will invest money, and take over the management operations of the company is a better option.  

According to him, the country will not achieve much with a Public Private Participation (PPP) , if government is still left to appoint directors and board members of the ECG.

"We are shooting ourselves in the foot, if government control is not checked…if there is still no performance criteria, no  structural reforms that allows for independent appointment of the board", he said.

 As part of the conditions to access the second compact of the millennium challenge funds, government of Ghana is required to privatise the operations of ECG.

Government was given three options: A private partner in charge of management, or franchising options, private partnership participation involving government selling shares to a private company.

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