Politics

Kwabena Donkor warns govt against restrictive tendering

Former Power Minister, Dr. Kwabena Donkor has kicked against any plans by the government to resort to restrictive tendering with regards to the PDS concession deal.

In an interview on 3FM’s Sunrise hosted by Winston Amoah, he was emphatic that restrictive tendering is not the best way to go.

He is therefore urging government to examine other available options like floating of shares, rather than rushing into the restrictive tendering.

Dr. Kwabena Donkor who is also the Member of Parliament for Pru East recalled that Ghana’s Power sector reform program was approved by cabinet in 1995.

“The component of power sector reform program was the modernization of ECG in terms of favoring its structure. Under the power sector reform program ECG was meant to be a holding company and Special Business Unit (SBU) registered as Limited Liability Company establish under the holding company. And these companies were to be responsible for geographical areas on a commercial basis,” he added.

“Let ECG be the asset owner as it was even under this PDS arrangement as a holding company, the SBU will also still be owned by the holding Company,” he said, noting that in order to solve the issue of distance in terms of management, each SBU should be given a relatively small geographical area so they can be closer to the customers.

“With the conditions approve for PDS, if the same conditions have been approved for the old ECG, their finances will be better,” he remarked.

Dr. Kwabena Donkor pointed out that the quarterly tariff adjustments as it persist now with the PDS will make ECG commercially profitable.

Read also: Kwabena Donkor urges govt to snub MCC; they can’t instruct us on PDS

By Prince Elikem Kpodo | 3news.com

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