By David Himbara
The shamblic Energy, Water and Sanitation Authority (EWSA) is dead. Thank goodness. This action is at least 10 years late – but as the old saying goes, better late than never. Here is the question though: has EWSA been privatised, or has its management outsourced?
What is known is that from EWSA ashes have emerged four companies:
1) Rwanda Energy Group (REG);
2) Energy Development Company (EDC);
3) Energy Utility Company (EUC). If I understand correctly REG is holding company; EDC is to produce and manage energy, while EUG maintains and supplies power to customers.
4) A separate entity, Water and Sanitation Corporation (WSC) will produce and manage water resources.
Now questions
Separation of production and management of utility companies is hardly revolutionary – such reforms are common, world-over. But what is uniquely Rwanda is how things are done. Rwanda style may be described as “voodoo” – mysterious actions with a high possibility that if you look too closely, you will be harmed. No one knows how decisions are made or what informed such decisions. Even when Rwandan voodoo decision-making leads to disasters, no one can safely ask questions. The case of Rwandatel comes to mind. Rwandatel was privatised, renationalised, privatised again, renationalised one more time, collapsed and then liquidated and sold in cannibalized fashion.
Were we in a normal economic environment, as opposed voodoo decision-making, someone would have explained the following questions with regards to creation of four new companies:
1) What informed the creation of the four new companies?
2) Is this a case of outright privatization of EWSA?
3) Or is this outsourcing the management – something that was tried and failed during Electrogas days?
4) And why retain the failed EWSA management if these are new companies?
Lastly, Minister Musoni is the institutional memory and money man for RPF’s Crystal Ventures, and President Kagame is of course Chairman of RPF. Crystal Ventures companies have already captured infrastructure ministry – almost all national and Kigali road construction projects are more or less a “property” of Crystal Ventures. Musoni’s ministership of infrastructure Crystal Ventures consolidates the ugly face of Rwanda’s crony capitalism.
