Investigations into PDS concession apt
Reliable, efficient, affordable and sustainable energy supply is key to driving the industrialisation of any country. It is a common fact that without energy, the growth of an economy will stagnate. It is for this and other reasons that governments, past and present, have focused their attention on efforts to revamp the country’s energy sector in a manner that will guarantee reliable supply of energy to support economic activities.
Fortunately, the government of the United States of America (USA) recognised the determination of Ghana to industrialise and turn the economic fortunes of the masses around, hence the Millennium Challenge Corporation (MCC) Ghana Power Compact which was signed in 2014. The $498 million investment was meant to help transform the country’s ailing energy sector. This was to be executed through private sector participation and key policy and institutional reforms that will provide more reliable and affordable power to the Ghanaian people. Christened the MCC Ghana Power Compact, it is expected to benefit an estimated 9.7 million Ghanaians over the next 20 years.
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On July 30, 2019, the government announced the suspension of the 20-year concession of the Electricity Company of Ghana (ECG) to Power Distribution Services (PDS) over what has been described as some serious anomalies associated with the deal and started investigations into the issue. The action of the government is to, among other things, help unravel whatever breaches there are in the contract and see the way forward in the interest of all parties and, in particular, the good people of Ghana.
Energy think tanks and experts in the industry have also urged the government to take urgent steps to fully investigate the matters arising and the various material breaches in the contract thereof.
The latest to do so is the United States government, which, through its embassy in Accra, also strongly encouraged the government to conduct full-scale forensic audit of the contract. (See full story on front page)
The Daily Graphic fully backs the calls for a thorough and impartial investigation into the matter to help unravel the truth.
We also are in full support of the cautious manner in which the government is treating the matter to ensure that there are no legal breaches that will rather aggravate the already volatile matter.
Just as the US government said, private sector participation is essential to restoring the financial health of Ghana’s energy sector and, therefore, all efforts must be made to ensure that we do not revert to the old system where the sector was solely controlled and managed by the state.
We also strongly believe that the country needs to demonstrate our capacity to manage donor funds in a manner that will satisfy those who support us in our quest for development.
The Daily Graphic can recall that the first compact brought some relief to the motoring public because of the roads that were constructed with the money given us. If this second compact is also meant to help make the power sector better to drive our energy sector towards our industrialisation, then we need to tread cautiously to derive the maximum benefit.
In our view, the best way to say thank you to our donors is for us to use the money in a flawless manner to win the hearts of our partners to encourage them to do more for the good people of Ghana.