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We hope to reduce debt to sales ratio by 20% if proposed tariff is approved – ECG

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The Electricity Company of Ghana (ECG) says it will reduce its debt to sales ratio by 20 percent provided its proposal for 148% increment in tariff is approved.

The major power distributor also hopes to increase other incomes by 10 percent and ensure a 95 percent completion of all projects once its proposed tariff increment is approved.

Speaking at a stakeholders’ consultative meeting for the multi-year major tariffs review organised by the Public Utilities Regulatory Commission (PURC), on Wednesday, the General Manager for Regulatory Management at ECG, Sylvia Noshie provided some justification for ECG’s demand for the increment in tariff.

“If the Commission approves our tariff, we have a plan, we know that there is a lot expected from us. We hope to reduce reduce our debt to sales ratio to 20%. We hope to meet the PURC’s collection target of 98 percent, in terms of operational excellence we would ensure that all projects would be at least 95 percent executed on time,” she stated.

ECG has faced heavy criticisms after it proposed a 148% increment in tariff to cover the period 2019 and 2022. 

But the company, during the stakeholders’ consultative meeting today, argued that the new tariff would help it reduce its losses and be more efficient.

“We would want to improve and be efficient when it comes to losses and therefore will be working towards meeting the targets that will be set by the regulator for the five-year period. Currently, our target is 22.6 percent,” she added.

The company also assured that if the proposed 148% increment in tariff is approved, there won’t be any tariff adjustment above 10 percent year-on-year.

Meanwhile, the Institute of Energy Security (IES) has described as unrealistic, the demand in tariff increment by ECG.

Even though the think tank agrees that the cost of production has gone up over the years, it insists the increment sought is on the high side.

Energy Analyst with the IES, Fritz Moses, speaking on JoyNews’ AM show on Tuesday, May 10, said the institute will meet the utility providers with the PURC and suggest their counter-proposals to them.

 “For the increment, the Electricity Company of Ghana is demanding, we believe it is on the high side and of course, we understand that the economy of 2018 and 2019 is not the same as 2022.

“So things have necessarily increased, but the rate of increment we believe is on the high side looking at the 148% and 334% these operators are asking for, and we feel they are unrealistic.”

“But these are proposals from their end, so when we meet them with the PURC, we will present our positions on what we think should be considered in the final review.”



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GPHA congratulates Director-General on his election as IAPH Vice President, African region

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The Ghana Ports and Harbours Authority (GPHA) has sent a congratulatory message to its Director General, Michael Achagwe Luguje on his election as the Vice-President (Africa Region) of the International Association of Ports and Harbours (IAPH).

IAPH is the global alliance of Ports and Harbours, with membership of over 160 Ports and 120 port-related businesses from 87 countries.

GPHA is member of the IAPH, and it is significant that its Director General now holds the position of Vice-President for Africa Region.

Polling 13 votes out of 14, Mr. Luguje, in line with Article 21 of IAPH Constitution, assumes the responsibility until next annual general meeting at the IAPH World Ports Conference in 2023.

From the humble beginnings in Pong-Tamale L.A. Primary School, Tamale and Navrongo Secondary Schools, through the University of Ghana, the World Maritime University and others, Mr. Luguje, has risen through the ranks from the office of the Special Assistant to the then Director General of GPHA to become the West and Central African Regional Coordinator of the International Maritime Organization (IMO), United Nation’s specialised regulatory agency for global shipping and maritime transport.

GPHA congratulates Director-General on his election as IAPH Vice President, African region

He also served as one of the longest Secretary-Generals of the Ports Management Association of West and Central Africa (PMAWCA).

In 2017, Mr. Luguje mobilized member ports from the Africa region towards the successful election of Ms. Hadiza Bala-Usman, Managing Director of Nigerian Ports Authority, to the office of Vice-President, Africa Region of the IAPH.

Further to the congratulatory note from the Board, Management and Staff of GPHA, the Chiefs, Elders and Good People of the Kasena-Nankana Traditional Areas, and the Savelugu-Nanton District have expressed pride and joy for this noble son of theirs.



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MSMEs are key to economic growth in the CommonWealth – CWEIC CEO

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The Chief Executive of the CommonWealth Enterprise and Investment Council (CWEIC), Rosie Glazebrook, has noted that Micro, Small and Medium-sized Enterprises (MSMEs) are key to the development of many economies in the Commonwealth.

This, in her view, underscored the CWEIC strategy to work with partners in key CommonWealth markets to foster MSME growth.

Ms. Glazebrook made these comments when she paid a courtesy call at one of the CWEIC’s key partners in Ghana, UMB (Universal Merchant Bank).

This formed part of Madam Glazier official tour of Ghana, this week. The bank structured the visit to enable Madam Glazebrook get a first-hand view of Ghanaian MSMEs, by hosting the CWEIC delegation at its “Centre for Businesses” within the Madina market enclave.

Chief Executive of UMB, Nana Dwemoh Benneh, in his remarks noted “a number of significant economic reports argue that MSMEs account for over 70% of all economic activity in Ghana. As a Bank, we have been focused on Ghanaian MSMEs and their growth since 1972, and thus we share this passion for MSMEs with the CWEIC.”

MSMEs are key to economic growth in the CommonWealth - CWEIC CEO

“Indeed, we are proud to have been selected by the CWEIC to partner the University of Coventry programme to build capacity for African SME’s and look forward to rolling out the programme this year, especially to MSMEs with female leadership”, he added.

Ms. Glazebrook in her remarks said, “UMB is Ghana’s oldest Merchant Bank, and I dare say the CommonWealth is one of Ghana’s oldest international relationships. Central to our work at the CWEIC is the COMMONWEALTH ADVANTAGE- the fact that overall its 21% cheaper to do business across the CommonWealth. We are thus very passionate about bring this advantage to bear on businesses and I am excited that one of our key partners is doing this in lock-step with us here in Ghana.”

Ms Glazebrook and her party were escorted around the market by Nana Dwemoh Benneh and other officials of the bank. This was followed by a presentation by the Head of Strategy on UMB’s MSME programme and the intergation with CWEIC, Roland Akafia.

UMB is a leading indigenous bank reputed for bringing a uniquely Ghanaian perspective to banking, since 1972. Headquartered in Accra and licensed by the Bank of Ghana, the bank operates out of 35 branches across Ghana.

The CWEIC is a commercial, not-for-profit membership organisation with an official mandate from the Commonwealth Heads of Government to facilitate trade and investment throughout the 54 Commonwealth member nations. The role of CWEIC is to use the convening power and trusted network of the Commonwealth, which is led by Her Majesty The Queen, to drive trade and investment.



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GRA and Finance Ministry engage Information Services Department on E-Levy implementation

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More than 200 staff of the Information Services Department across the country are undergoing a special training in Kumasi to help intensify public education on the implementation of the Electronic Transfer Levy (E-Levy).

This is part of measures by the Ghana Revenue Authority and the Ministry of Finance to address misconceptions about the E-levy and its implementation.

Deputy Information Minister, Fatimatu Abubakar, is positive the ISD will use the various local languages to properly disseminate the right information and clear the misconception about the e-levy.

The passage and implementation of the electronic transfer levy have come with diverse concerns and misinformation.

This has compelled authorities to engage officers of the Information Services Department across the country to help with the education.

Deputy Finance Minister, Abena Osei Asare, says it is crucial for the ISD to employ the various local languages to better address the misinformation on E-levy.

There have been concerns about logistical constraints often associated with the work of the Information Services Department.

Fatimatu Abubakar insists the Department is well equipped enough to carry out the education.

The initiative is expected to empower the Information Service Department on the e-levy mechanics.



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