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NEDco Eyes $200m Loan To Improve Its Operations

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The Northern Electricity Distribution Company (NEDco) says it is raising over $200 million in the form of grants and concessionary loans to improve on its operations.

This follows the inability of the company to access a $54-million grant from the Millennium Challenge Corporation (MCC) of then United States to build its delivery capacity for efficient power supply.

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The company could not access the grant due to time constraints, among other challenges. The grant was to be used to implement electricity improvement projects in some parts of its operational area under the auspices of the Millennium Development Authority (MiDA).

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International institutions that have so far pledged support to the company are AB & Davids, $100 million; Techno Electric & Engineering Company Limited, $100 million; Pear River, $10 million; the World Bank, $1.5 million, and the Swiss State Secretariat for Economic Affairs, $1.5 million.

Mr Kotoka ( middle) addressing the media. On his right is Mr Frank Akiligo, Managing Director of NEDCo, and on the left is Mr Abukari Danladi, the Commercial Manager, NEDco

Meanwhile, the management of NEDco has given an assurance that it has put in some measures to secure additional funding from the MCC to enhance its operations.

During a media encounter in Tamale last Monday, the Corporate Communications Manager of NEDco, Mr. Maxwell K. Kotoka, signaled that, the company was undismayed, despite its inability to secure the MCC grant and expressed its confidence in attracting funding from other sources.

The ability of NEDco to secure loan from other sources, Mr. Kotoka, attributed to the company’s financial standing and goodwill. He also appealed to consumers to conserve power and pay for what they consume, notwithstanding the amount of money the company has secured for recapitalisation.

The Managing Director of NEDco, Mr. Frank Akiligo, who also spoke at the media briefing noted that, one of the major challenges affecting NEDco’s operations and revenue generation was power theft. He added that the company had put measures in place to apprehend and sanction those who engaged in such negative practices.

In January this year, NEDco called for an upward review, indicating that, it would relatively upsurge the Distribution Service Charge (DSC) pegged at GHC0.307555/kWh in 2018 to GHC0.430526/kWh to finance its operations in 2019.

Mr. Kotoka at the time, hinted that,a n upsurge in the DSC would also help the company to service the cost of materials and equipment, make a significant investment on infrastructure as well as the needed resources to ensure quality services.

Although NEDCo procures and distribute electricity efficiently, safely, and reliably in the northern sector of Ghana in a commercially viable manner, its operation today, covers two – thirds of the landmass of Ghana extending into Ashanti, Volta and Western Regions.

 

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