Ghana: Energy Ministry Unveils Guiding Framework For Private Sector Participation In Electricity Distribution Sector

Ghana’s Ministry of Energy and Green Transition on Monday unveiled the Guiding Framework for Private Sector Participation (PSP) in the operations of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).

Addressing sections of the media at the Ministry on behalf of the sector minister, the Chief Director of the Ministry, Mr. Solomon Adjetey Sowah, noted that the Guiding Framework sets out the processes, roles, and responsibilities that will guide the work of the Technical Advisor and the PSP Implementation Unit, in close collaboration with ECG, NEDCo, and relevant regulatory institutions.

“Today’s occasion marks a significant milestone in our collective efforts to strengthen electricity service delivery, improve operational efficiency, and secure a resilient and sustainable energy future for our country,” he stressed.

He added that the Guiding Framework reflects the Government’s firm resolve to transform the electricity distribution landscape through innovation, strategic collaboration, and responsible engagement with the private sector in the national interest.

While acknowledging Ghana’s notable progress in expanding electricity access, increasing generation capacity, and strengthening transmission reliability, Mr. Sowah indicated that longstanding challenges within the distribution subsector—including technical and commercial losses, inadequate investment, revenue shortfalls, and operational inefficiencies—continue to undermine overall sector performance and must be addressed decisively.

He explained that it is against this backdrop that Government initiated a structured process to explore and design a viable PSP arrangement for ECG and NEDCo.

“The objective is clear: to attract technical expertise, operational efficiency, and capital investment, while safeguarding the national interest and ensuring value for money,” he added.

Mr. Sowah revealed that Government established a PSP Steering Committee, supported by Financial, Technical, and Communications sub-groups, to lead a transparent and evidence-driven process following Cabinet’s approval on April 17, 2025, for the reintroduction of Private Sector Participation in electricity distribution across the country.

“Since then, the Committee has undertaken extensive work, including:

• detailed diagnostic assessments of ECG and NEDCo;
• evaluation of global PSP models and lessons from comparable utilities;
• benchmarking from international study tours to Nigeria, Côte d’Ivoire, India, and the United States;
• financial modelling and legal analysis of potential partnership structures; and
• the design of a Ghana-specific approach that reflects our unique context, needs, and constraints,” Mr. Sowah stated.

He noted that these efforts culminated in the development of the Guiding Framework, a document shaped by data, consultation, and collaboration.

For his part, the Chairman of the Steering Committee, Engineer Jabesh Amissah-Arthur, who presented highlights of the Guiding Framework, said it outlines the overall objectives, the PSP model, scope of work, and asset ownership arrangements. Other key components include zoning and tariffs, the remuneration system, governance and oversight, as well as regulatory and social safeguards.

He emphasised that the PSP Framework is a strategic tool designed not to privatise the utility companies, but to enhance performance, build resilience, and unlock the full potential of the electricity distribution sector.