Minority Oppose VRA, GRIDCo Listing

Policy analysts and energy experts have expressed divergent views on government’s plans to list the Volta River Authority (VRA) and Ghana Grid Company Limited (GRIDCO) on the Ghana Stock Exchange (GSE).

Some experts, who kicked against the move, have argued that GRIDCO is not performing badly.

However, others support the listing of the two entities on the stock exchange, explaining that that would make the companies more efficient and help address the reoccurring power crisis.

Government is considering listing GRIDCo and VRA on the stock exchange to make the energy sector more efficient and resolve the funding challenges facing power companies.

Speaking on Citi Breakfast Show in Accra yesterday, the former Minister for Power, Dr. Kwabena Donkor, said government's plan to list the GRIDCo on the Stock Exchange would be an unnecessary misstep for the country.

“GRIDCo has recorded profits in the last couple of years, and so why would you put your brain on the stock exchange.”

“Whoever is advising the government will be doing the country a disservice,” he said.

Security Implications
According to him, there are also security implications in listing the company on the Stock Exchange, stating that “GRIDCo is the nerve centre of the power system.

“In fact, in some countries and in some jurisdictions, you don't even have the grid company on GPS or on the map, because it is considered a major security installation,” he explained.

The former Power Minister disclosed that “if the enlisting on the stock exchange is to ensure value and revenue, government can continue to rely on the energy sector levy. The levies are enabling us to pay off the debt.”

ISODEC Supports Listing
However, a policy analyst at the Integrated Social Development Center (ISODEC), Dr. Steve Manteaw, has backed government's plans to list VRA and GRIDCO on the Ghana Stock Exchange.

Speaking on the Morning Starr on Wednesday, Dr. Manteaw said the move would ensure corporate transparency and accountability.

“I agree with government to dilute the ownership of GRIDCO and VRA. You don't go on the stock market only when you are doing well. You can go when you have a challenge.”

By Cephas Larbi
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