The Ranking Member on the Energy Committee of Parliament, Edward Bawa has explained that the state’s power generation and distribution outlets cannot be privatised due to the security implications.
He said power generation for economic development is so vital that it cannot be placed solely in the hands of private entities.
“For security reasons, you cannot privatise ECG, VRA and GRIDCo. You can make the private sector play a part, but you can’t hand over everything,” he said on Key Points, April 20, 2024.
The topic for discussion was the suggestion by the Asantehene Otumfuo Osei Tutu II, that government must focus on formulating policies for effective governance of the various sectors of the economy.
Privatise GRIDCo, VRA and ECG – Otumfuo tells govt
Speaking during the commissioning of a 430-kilometre natural gas pipeline by Genser Energy, in Kumasi on Wednesday, April 17, he said “It’s about time that the government realizes that it’s not going to work for the government to be involved in setting up companies without involving the private sector, it doesn’t work. The government should concentrate on policies and involve the private sector and you can attract more investors into the country which will create more employment.
“VRA and others are all government establishments, let’s give it out and diversify them into the private sector and get more money there and get the right people to do it. GRIDCo and others let’s give them the money and get the qualified people, diverse government from it and let them work. Electricity Company is in a situation where we don’t know, but that also must be diversified and given to the private sector.
However, Mr Bawa stressed that a Public-Private-Partnership (PPP) is the way to go.
Speaking on the same show, an energy expert, Kojo Poku said that it is not feasible to list an unprofitable company on the Ghana Stock Exchange.
According to him, such a venture will not yield the desired outcome.
“I agree with the Asantehene. There are many more state-owned enterprises that I think must be privatised. I am for the divestiture of some state-owned enterprises. However, before you can list them, the company should be making profit. You cannot list an unprofitable organization on the stock exchange,” he explained.
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