Electricity Company of Ghana
Electricity Company of Ghana

MiDA in a statement last week stated, “The MCC has confirmed that the Government of Ghana has met all requirements and the Compact entered into force as of Tuesday, September 6, 2016”

“I am happy to advise that yesterday we met all the conditions precedent to Entry into Force of the Compact and submitted all the required documentation in that respect,” Ing Owura Sarfo, Chief Executive Officer of MiDA said.

He added that the Government of Ghana now has five years to implement the Compact Program.

The MiDA boss explained that there is nothing to fear about government’s plan to concession ECG stressing that some aspects of the power distributors operations are already in private hands. Plans to find a private company to invest in ECG received a boost on Wednesday, September 7, after Government satisfied the conditions required to access US$498 million.

The Ghana Power Compact, also referred to as Compact II, has now entered into force despite a law suit against the Millennium Development Authority (MiDA) over the concession of the Electricity Company of Ghana (ECG).

The statement further explained that by the action, the treaty which was signed on August 5, 2014 between the Republic of Ghana and the United States of America, represented by the Millennium Challenge Corporation (MCC) has become effective and Ghana now has access to the Program funds.

The Journey to the concession deal for the power company has been marked by vehement opposition from ECG Staff who are insecure about their jobs and the future of the company.

Meanwhile, there are currently a number of court case against the ECG concession move.

A member of the opposition New Patriotic Party’s (NPP) communications team, Saaka Salia, sued MiDA over the planned concession of the ECG, arguing that MiDA is not fit to participate in concession arrangement for the ECG as an adviser.

Also being sued are the Public Utilities Regulatory Commission, (PURC), the Attorney General’s office and the Energy Commission. In the suit, Mr. Salia argued that, MIDA is not fit to participate in concession because its conduct breached Ghana’s laws after it authored and circulated a draft tariff methodology.

Mr. Salia explained that “the reason for the breach is that, MiDA as well as the IFC [International Finance Corporation] collaborated and forged a document purported to be coming from the PURC, and the Energy Commission and to that extent, they allowed that fraudulent document to fill the part of the transaction process.” “That is the reason why I decided to take them to court to get them to explain to the court and the Ghanaian people why the transaction should not be truncated after the forged document has been recovered,” he added.

Mr. Salia also indicated that, “there are documents to prove that the Energy Commission did not know about the forged documents.” Already, ECG workers have embarked on a two-day strike to protest the deal.

However, in an interview with the Reform Unit Manager of MIDA, Mike Awuah assured that nobody has ill intentions for ECG. “When you go to ECG now, there is a Chinese company, what they are doing is that they are reducing loses and for any kilowatt that is saved, some money is saved and that money is shared with ECG, that is private sector participation in the business of ECG right away. “Whenever someone connects power to a new installation or a facility, that contractor who does the work is a private sector entity that is operating and participating in the business of ECG,” he explained. Mr. Awuah further maintained that MIDA is open to honest engagements with all stakeholders.

-Adnan Adams Mohammed

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