Former Minister for Power, Dr. Kwabena Donkor, has revealed that the controversial concession agreement for the Electricity Company of Ghana (ECG) was a Cabinet-approved decision under the Mahama administration, following extensive internal deliberation.
In an interview with Bola Ray on Starr Chat on Starr 103.5 FM on Thursday evening, Dr. Donkor recounted the process that led to the deal, explaining that the Cabinet had two options: equity privatisation or a concession.
“As Minister for Power, I sent a proposal to Cabinet. We had two choices – either to go for equity privatisation of ECG or to go for the concession. Cabinet agreed, the President agreed, and we went for the concession,” he stated.
Dr. Donkor clarified that under the original concession framework, Ghanaian businesses were expected to hold between 20% and 28% equity. This arrangement, he explained, was designed to attract international investment and expertise while offering local companies the opportunity to grow through strategic partnerships.
“The expectation was that at the end of the concession period, Ghanaian businesses would have learnt a lot on the job. In the next round of business, Ghanaian businesses would take over,” he said.
He disclosed that this framework changed following the change of government in 2016.
“NPP came, they changed the playing field and ruled that Ghanaian businesses must have 51%, instead of our 20%–28%. They had the people gathered who had the capital,” Dr. Donkor stated.
According to him, the original plan hinged on a $500 million investment from the U.S. government through the Millennium Challenge Corporation, complemented by another $500 million from private sector investors—amounting to a total $1 billion intended to bridge ECG’s infrastructure gap.
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He suggested, however, that the revised equity structure compromised key objectives such as technology transfer and institutional learning.
“That was why the configuration was 20%. We had a French big firm lined up. But once the equity holding changed, Ghanaian interests were diluted to 1%,” he lamented.
Dr. Donkor’s remarks shed new light on the underlying political and strategic decisions behind the now-defunct Power Distribution Services (PDS) deal and reignite discussions on balancing national interest with technical capacity in public-private partnerships.
Source: Starrfm.com.gh/Barbara Yeboah
