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ECG has not been sold, it operates as an asset owner and has a license as a Bulk Energy Trader - Ing. Samuel Boakye-Appiah (MD, ECG)

The MD's Speech on Media Engagement on ECG's New Business

 

ECG MEDIA ENCOUNTER AT ALISA HOTEL ON 6TH JUNE 2019

 

 

 

Management and staff of ECG, the Media fraternity, Ladies and Gentlemen.  All protocols observed – Good Morning. On behalf of the Board, Management and staff of ECG, I welcome you to today’s Press Briefing.

 

 

 

The objective of this media encounter is to inform our stakeholders and the general public about ECG’s new role in Ghana’s Power Sector and assure them of our continued existence as a company following the transfer of our electricity distribution business to a Concessionaire, Messrs Power Distribution Services on 1st March 2019.

 

 

 

Ghana’s energy sector has witnessed a major change in power distribution with the introduction of Power Distribution Services Ghana Limited under a Concession Agreement which officially took effect on 1st March 2019. The Electricity Company of Ghana Limited, which was until then the power distributor in Ghana has not been sold or taken over. The Company is still a going concern and is operating as a Responsible Asset Owner, Bulk Energy Trader, Monitoring the Concessionaire, and providing Training and skills development for the Energy Sector in Ghana and beyond.

 

 

 

In August 2014, the Government of Ghana signed the Compact II with the Millennium Challenge Corporation involving USD498.2Million as the sum of the entire project. The Compact II fund was earmarked for six energy sector projects with the largest being the ECG Financial and Operational Turnaround Project (EFOT) which is estimated at USD339.6Million.

 

 

 

Within the ECG EFOT project is the ECG Private Sector Participation (PSP) which is the key project and involves a twenty (20) year single concession aimed at improving electricity distribution in Ghana. This will see to increased investments into the energy distribution infrastructure to expand the electricity network, reduce technical and commercial losses as well as reducing revenue collection losses.

 

On 3rd July 2018, ECG signed a Lease and Assignment Agreement (LAA) and a Bulk Supply Agreement (BSA) with the concessionaire, Power Distribution Services Limited (PDS Ltd).  The Government of Ghana also signed the Government Support Agreement with PDS. 

 

 

 

As at 1st March 2019, ECG had completed a historic 30-month PSP journey to usher in the new electricity distributor, the Power Distribution Services (PDS) Limited and handed over its power distribution business to PDS Limited under the Concession Agreement.

 

Under this agreement, ECG has leased its assets to a private Company – PDS Ghana Ltd. ECG has therefore not been sold.

 

 

 

ECG’s mandate includes bulk energy purchase, and trade, network and assets ownership, performance monitoring of PDS and Consultancy Services while PDS mandate is asset management, service provision and electricity sales

 

 

 

In accordance with Government of Ghana directives, 6400 staff of ECG were transferred from ECG to PDS on the same Conditions of Service as they were enjoying with the parent company ECG.  Similarly, the 112 staff who remained with ECG are also enjoying their existing Conditions of services.  Therefore, no staff has lost his or her jobs as a result of the introduction of the concessionaire into ECG’s business.

 

We also wish to emphasize that neither ECG’s assets nor its liabilities were transferred to Messrs. PDS.  ECG has retained all the network assets and is also liable for debts incurred prior to the transfer of its operations to PDS.  We must emphasize that ECG has not been sold.  ECG has not changed to PDS.  ECG is ECG and PDS is PDS.  They are two different entities playing different roles in the Power Sector.

 

 

 

ECG will sell energy in bulk to PDS.  PDS will in turn pay for the energy consumed and make lease payments to ECG for using ECG’s networks. 

 

 

 

PDS Ghana Ltd is now responsible for electrical network operations including regular maintenance, fault repairs, commercial operations (billing, revenue collection, new services connections and investments, rehabilitation, expansion and network extensions)

 

 

 

PDS Ghana Ltd as the distributor will handle and manage on behalf of ECG, all legacy(outstanding) issues, revenue collection and unpaid bills prior to the transfer date on 1st March 2019.

 

 

 

PDS will collect all outstanding monies customers owe to ECG on ECG’s behalf.

 

 

 

Meanwhile, ECG continues to operate as a Bulk Energy Trader, energy exporter after satisfying the domestic market and a Responsible Asset Owner. Moreover, leveraging on our expertise in the Energy Sector, we are turning our Training School into a Training and Consultancy Services provider. We are exploring other business opportunities in the energy sector.  We have maintained our headquarters building – Electro Volta House.  Our presence will be felt in all the political regions where PDS operate as part of our monitoring role.

 

 

 

ECG will discharge its obligations under all existing contracts signed prior to the transfer.

 

ECG has appointed PDS Ghana Limited as the Agent for completion of all Capital Works In Progress (CWIPs). However, ECG will be responsible for payments to contractors/vendors.

 

 

 

Ladies and gentlemen,

 

ECG’s Training Centre is one of the strategic assets that was not transferred to PDS.  Prior to the transfer, the Centre had trained more than 4000 personnel in various critical skills in the power utility sector.  The centre also trains utility service workers from the Military, Hospitals, Factories, our sister companies – GRIDCO & NEDCO as well as Engineers from the West Africa Subregion notably, Sierra Leone and Liberia.  As part of its new business focus, ECG will leverage on its fifty years of experience and the huge intellectual capital at its disposal to provide training and consultancy services focusing on the energy sector.

 

 

 

The ECG’s Training School is the strategic competence development centre of the company providing technical and non-technical training to serve ECG, VRA, Gridco, Nedco and other utilities in West Africa Sub-region.  It has been accredited by the National Board for Professional and Technician Examinations (NABP TEX).  The training programs cover technical areas for organizations within the Energy Sector, mining oil exploration and provide in-service trainings, tailored programs for organization, refresher programs and engineering basics for non-engineers in engineering fields.  We urge the general public to take advantage to patronize our training Centre and enjoy our first-class training facilities.

 

 

 

In conclusion, we have used this forum to inform stakeholders and the general public about our continued existence and new business lines.  ECG has not been sold.  ECG has not changed to PDS.  ECG is still ECG.  We are now an Asset Owner, Bulk Energy Trader and a provider of training and consultancy services among other future business lines. 

 

 

 

ECG will continue to play a key role in Ghana’s energy sector as a Responsible Asset Owner safeguarding the value and condition of the distribution network and ensuring PDS compliance with the Concession Agreement.

 

 

 

We recognize the media as a key stakeholder who can assist us in carrying out the noble duty of a Responsible Asset Owner for our dear country.  We are counting on you to help us propagate our message.

 

 

 

Long Live Ghana

 

Long Live ECG

 

Thank you and God bless you all.

 

 

 

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***For Enquiries and Interviews, please contact Mr. Dan Adjei-Larbi on 0208262628

 

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