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Business News Wed, 21 Feb 2018

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‘We’ll ensure ECG concession is in Ghana’s interest’ – MiDA

The Millennium Development Authority [MiDA], has confirmed receipt of letters from the consortium bidding for the ECG Concession arrangement, protesting the 51% mandatory Ghanaian ownership.

The companies, French electricity conglomerate, EDF, and transnational Veolia, together with their local partner, CH Group, say the limitations will affect their finances and restrict any enforcement of the rights of lenders.

However MiDA, in a release said it will work in the interest of the country. “MiDA confirms that it has received such a letter on the bidders’ concern about the government of Ghana’s policy to have 51% Ghanaian ownership in the structure of the concession. MiDA wishes to assure all Ghanaians that it is managing the transaction on behalf of the government of Ghana and would ensure that the transaction is managed for the benefit of the people of Ghana,” the release indicated.

Ghanaians must hold majority shares

Meanwhile, the Public Utilities Workers Union (PUWU), insists government must ensure that Ghanaians hold majority shares in the concession.

The General Secretary of PUWU, Michael Adumatta Nyantakyi in an interview with Citi News indicated that though the concession is not the best option, it will be more prudent for majority to be in hands of Ghanaians than foreigners.

“We have said that the concession is not the best option, but if that is still the option- that is if majority is still in the hands of Ghanaians, it is better than majority in the hands of foreigners.”

The Compact II

President Nana Addo in 2017 announced that Ghana had renegotiated the deal to control 51 percent of the Power Compact II with the Millennium Challenge Corporation(MCC).

Under the Power Compact, six projects will be implemented to address the the root causes of the unavailability and unreliability of power in Ghana

The project include ECG Financial and Operational Turnaround Project, NEDCo Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, and Access Project.

The rest are Power Generation Sector Improvement Project and Energy Efficiency, and Demand Side Management Project,.

The Government of Ghana signed the Ghana Power Compact with the Millennium Challenge Corporation (MCC), an independent United States government agency, on the sidelines of the US Africa Leaders’ Summit in Washington on August 5, 2014.

Ghana to get over 498m dollars

Ghana signed the Power Compact with the United States of America acting through the Millennium Challenge Corporation (MCC), an independent United States government agency, on the sidelines of the US Africa Leaders’ Summit in Washington DC on August 5, 2014.

The Ghana Power Compact would provide Ghana with a grant sum of four hundred and ninety eight million, two hundred thousand United States Dollars (US$498,200,000) to improve the performance of Ghana’s power sector, unlock the country’s economic potential, create jobs, and reduce poverty.

About US$350 million of the grant is being invested in ECG to make the country’s power distributor operationally and financially more efficient.

The Compact is being implemented by the Government of Ghana through the Millennium Development Authority (MiDA).

Source: citifmonline.com

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