Smith Prosper Boahene Calls for PPP to Rescue ECG from Revenue Leakages
Energy sector analyst and senior researcher at Institute of Energy Security, Smith Prosper Boahene has called for the adoption of a Public-Private Partnership (PPP) model in the management of the Electricity Company of Ghana (ECG) to help address persistent revenue leakages and operational losses.
According to Mr. Boahene, Ghana must prioritize energy security while implementing measures to improve ECG’s efficiency and financial sustainability. In an interview on the Kessben Maakye show in Accra,
he said government should be commended for measures introduced to shield the energy sector from external shocks, but stressed the need to tackle the persistent revenue challenges confronting ECG.
Mr. Boahene argued that every serious government would find ways to stop revenue leakages and stabilize ECG’s operations, even if the utility does not generate direct profits.
He noted that ECG is currently unable to generate enough revenue from electricity supplied by Independent Power Producers (IPPs), resulting in government interventions through subsidies or loans to settle power sector obligations.
He further supported efforts to bring in private-sector participation, saying a properly structured PPP could improve management efficiency and revenue collection.
However, he cautioned that the arrangement must be carefully designed to prevent excessive increases in electricity tariffs, which could trigger complaints from consumers and businesses.
Mr. Boahene also called for an upgrade of Ghana’s transmission infrastructure to reduce technical losses and improve the reliability of power distribution.
He stressed that PPP should not be confused with outright privatization, arguing that the concept must be properly communicated to stakeholders to build public understanding and confidence.
According to him, the focus should be on using private-sector expertise and investment to strengthen ECG while protecting the interests of consumers and the state.
By Maurice Otoo
