The Minister for Energy and Green Transition, John Abdulai Jinapor, has unveiled a Guiding Framework for Private Sector Partnership (PSP) in Ghana’s electricity distribution sector, marking a major step toward improving power service delivery and sector efficiency.
Speaking to the media on Monday, December 15, 2025, at the unveiling ceremony, the Chief Director of the Ministry of Energy, Engineer Solomon Adjetey Sowah, explained that the framework provides a clear and coherent structure to advance private sector participation in electricity distribution.
He said it defines the processes, roles, and responsibilities that will guide the work of the Technical Advisor and the PSP Implementation Unit, in close collaboration with the Electricity Company of Ghana (ECG), the Northern Electricity Distribution Company (NEDCo), and relevant regulatory institutions.
He described the launch as a significant milestone in Ghana’s efforts to strengthen electricity service delivery, improve operational efficiency, and secure a resilient and sustainable energy future.
According to him, the framework reflects government’s firm commitment to transforming the distribution subsector through innovation, strategic collaboration, and responsible private sector engagement in the national interest.
While acknowledging Ghana’s progress in expanding electricity access, increasing generation capacity, and improving transmission reliability, Engineer Sowah noted that persistent challenges within the distribution subsector—such as high technical and commercial losses, inadequate investment, revenue shortfalls, and operational inefficiencies continue to undermine overall sector performance. He said these challenges necessitated decisive action.
It was against this backdrop, he explained, that government initiated a structured process to design a viable PSP arrangement for ECG and NEDCo, aimed at attracting technical expertise, improving operational efficiency, and mobilising capital investment, while safeguarding national interest and ensuring value for money.
He revealed that following Cabinet approval on April 17, 2025, government established a PSP Steering Committee, supported by Financial, Technical, and Communications subgroups, to lead a transparent and evidence-based process.
The work of the committee, he said, included detailed diagnostic assessments of ECG and NEDCo, evaluation of global PSP models, international benchmarking through study tours to Nigeria, Côte d’Ivoire, India, and the United States, as well as financial modelling and legal analysis of potential partnership structures.
According to Engineer Sowah, these efforts culminated in the development of the Guiding Framework, a document shaped by data, consultation, and collaboration, and tailored to Ghana’s unique context and needs.
For his part, the Chairman of the PSP Steering Committee, Engineer Jabesh Amissah-Arthur, said the framework outlines the overall goal of the PSP, the proposed partnership model, scope of work, and asset ownership arrangements. Other key components include zoning and tariffs, remuneration systems, governance and oversight mechanisms, as well as regulatory and social safeguards.
He emphasized that the PSP Framework is not intended to privatise ECG or NEDCo, but rather to enhance performance, build resilience, and unlock the full potential of the electricity distribution sector.
“We envision a future where losses are significantly reduced, revenue collection is strengthened, customer service is modern and technology-driven, investments in network upgrades are timely and sustainable, and ECG and NEDCo operate with improved efficiency and discipline,” Engineer Amissah-Arthur said.
