1] “The government in the compact agreed to a partial privatization — a percentage of shares yet to be determined — or a concession,” James said in an interview at the U.S. Embassy on April 24. “Unless you have an efficient and operationally, financially sound distribution company, the rest of the chain is not going to work.”
2] A feasibility study as part of the compact’s preparation showed that the power company known as ECG will require $800 million investment in the distribution network, she said.
3] If Ghana opts for a concessionaire, the government will remain the sole shareholder in ECG, James said. A private company will be brought in to manage the assets and operate ECG for about 20 years, she said. The concessionaire may pay a fee to government during the period, she said.
4] Ghana will spend $339 million of the compact amount to upgrade equipment at ECG and help reduce losses, James said. The company is unable to collect about 30 percent of its revenue because of unpaid accounts, technical problems and “commercial” losses, she said.
5] Once the government decides whether to sell a stake or appoint an operator, it will open bids for a partner in the second half of the year, James said. That should lead either to the selection of an investor or a concessionaire within 18 months to two years from now, she said.
6] For meeting the requirements, Ghana will receive financial support worth $498.2 million over five years from the U.S., according to the compact document, a copy of which is published on the website of the Ghanaian department managing the funds. It includes a provision barring Ghana from allowing ECG or its counterpart in the north “to enter into any financial arrangements that MCC reasonably determines would have a material adverse effect” on the utilities.