Delivering a speech at this year’s May Day celebration, the President gave the assurance that his government will not privatize ECG and that it remains a property of the State.
“Let me restate ECG is and will remain a wholly owned state enterprise,” he said.
The President said, government has no intention of privatising ECG and that the “agreement under the Millennium Challenge Compact is to leverage private sector participation at the client level to assist in resolving client complaints and revenue collection”.
He also said, there will be no worker retrenchment as a result of the reform.
The government of Ghana through the second Millennium Challenge Compact under the Millennium Development Authority (MiDA), has reached an agreement with the U.S. Government for a $500 million facility to revamp ECG with ECG managed by a private company manages.
Per the agreement, the private firm will operate and manage ECG under a concession arrangement for a period of 30 years and hand it back to the government of Ghana.
Forty-five companies are already bidding for the management of the state power company as the government of Ghana intends ceding portions.
Meanwhile, many people kicked against the deal.
An Energy analyst Kojo Poku has also added his voice to the deal and said, the authorities must institute profit-sharing measures between government and any firm, which will be given the contract to manage ECG.
He was speaking on the Executive Breakfast Show (EBS) on Class 91.3fm on April 20.
He said, apart from the good service delivery, the country must benefit financially from profits that will be accumulated by the private firm.
Source; Newsghana.com.gh
