MiDA Committed to Making NEDCo Financially Strong
The Millennium Development Authority (MiDA) has stressed its commitment to make the Northern Electricity Distribution Company (NEDCo) financially viable and efficient with the NEDCo Financial and Operational Turnaround Project (NFOT).
According to the Director of Generation Projects at MiDA, Mawunyo Rubson, a financially viable and independent NEDCO will eventually boost business growth and socio-economic activities in the Northern part of Ghana.
The NEDCo Financial and Operational Turnaround Project, is one of six Projects under the Power Compact Program being implemented by MiDA, with a budget of US$65.7 million, consisting of four Sub-Project Activities.
They include improvement in electricity services to the Central Business Area of Tamale, the commercial capital of Northern Ghana; and also improving the customer mix in NEDCo’s operational area by attracting and serving more commercial customers.
Ultimately, MiDA’s interventions under the Project seek to develop NEDCo into an efficient and self-sustaining power utility that will spearhead economic growth in the northern part of Ghana.
Speaking to Citi Business News, Mawunyo Rubson stated that it is important for NEDCo to be able to recover its cost, and improve upon its revenue.
“This project seeks to turn NEDCo around so that it can be financially and operationally sustainable. This is NEDCo’s vision, is to eventually ensure that it can stand on its own and become independent from VRA”.
Highlighting the importance project, Mr. Rubson maintained that it will improve delivery.
“The important thing is to ensure that NEDCo can improve upon its ability to deliver adequate and reliable power to Northern Ghana. It’s equally important that NEDCo can recover its cost, improve upon its revenue and also ensure that it can deliver service to its customers in a timely and effective manner.”
The four proposed projects under the NFOT have the potential to increase NEDCo’s electricity sales by an average of approximately US$11 million per year between 2018 and 2025.
Sustainable power is expected to lead to an expanded customer base that would include a significant number of industrial customers; a major boost to NEDCo’s sustainability.