Electricity Company of Ghana to be privatized in 2016

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Electricity Company of Ghana to be privatized in 2016

According to local sources, the Electricity Company of Ghana (ECG) would be privatised by March or June 2016 year depending on the privatization method the government chooses.

The government of Ghana would be considering two privatisation options – partial privatisation or a concession contract.

A detailed report by the International Finance Corporation (IFC) for the Government of Ghana, the Millennium Development Corporation and the World Bank, said both options are feasible under the legal framework of Ghana.

A tender process to select a Transaction advisor is ongoing and the process is expected to be completed by December this year.

With partial privatisation, the government would sell shares in ECG to a private partner and retains partial ownership of the company.

However, with concession, the Government would enter into an agreement with the private partner where the private partner will have the exclusive right to operate, maintain and carry out investment in ECG for a given number of years.

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