CG privatization: Gov't begins revaluation of assets

The government of Ghana has begun a revaluation of all fixed assets of the Electricity Company of Ghana as the country moves to privatize the state-owned power distributor. According to a memo sighted by Oman News, General Managers in Accra West, Western region and Eastern region have been directed to prepare for a thorough declaration and revaluation of assets of the company. Parts of the memo signed by the Director of Finance at ECG, Frank Anokwafo stated that KPMG has been selected "as consultants to undertake a physical inventory and revaluation of the company’s fixed assets in fulfillment of its policy of carrying out this exercise every five years and also to assist in determining appropriate values to be assigned them for the impending concession arrangement.” "The consultant and his team will be visiting your region and a number of districts from 20th June 2016 to 1st July 2016 to do a physical inventory of both movable and immovable property i.e. vehicles, substations, switchgear, computers, electricity networks and all others," the memo added. The memo also directed the release of "transport officers to assist the team to identify all vehicles in the regional and district offices; the release of a human resource officer to assist the team in identifying structures in the region. "The provision of first class accommodation (including meals) to the team which includes expatriates," it added. In February 2015, StarrFMonline.com intercepted a confidential document prepared by the International Finance Corporation (IFC) titled: Ghana Power Compact Private Sector Participation Options Study for ECG. It was commissioned by the Millennium Development Corporation and the World Bank. The document said the private partner for ECG “is expected to strengthen and improve corporate governance and management, invest in needed infrastructure to expand services, reduce losses, and improve quality of service delivery.” The document added that with concession, “the Government will 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. “The Private Partner will have the responsibility over the operation and maintenance of all assets and investment during the period, but the government will remain the sole owner of ECG. Once the concession expires, the government will assume total control of the company. The number of years under this concession option is typically around 20 to 30 years.

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