Business News of 2026-09-08
TUC rejects World Bank-backed private sector role in ECG, NEDCo
The Trades Union Congress (TUC)-Ghana has rejected the proposed private sector participation (PSP) in the operations of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo), arguing that the arrangement amounts to privatisation of the country’s electricity distribution sector.
The union said it would use all legal means available to oppose the proposal, which it said would transfer significant operational responsibilities from the two state-owned electricity distributors to private operators.
In a recent statement issued in September 2026, the TUC challenged comments by the World Bank’s Country Director, Dr Adrian Alter, who said on Channel One Television on August 24, 2026, that the proposed private sector participation involved “only revenue collection”.
However, the TUC believes that description does not reflect the model proposed by the Transaction Advisor appointed at the instance of the World Bank and the International Monetary Fund (IMF).
“Contrary to the Bank’s explanation, the Transaction Advisor appointed at the instance of the Bank and its sister institution, the IMF, has proposed a model in which private operators will assume responsibility for electricity distribution from the Bulk Supply Points to the final customer,” the union said.
Under the proposed model, ECG and NEDCo would retain ownership of their distribution assets, while private operators would lease and operate the networks.
Additionally, the private operators would handle billing, revenue collection, customer management, network maintenance, loss reduction and other technical and commercial functions.
“The World Bank is aware of this model. It is shocking for the Bank to say otherwise. And it is even more disingenuous for the Bank to claim that ECG is not going to be privatised,” the TUC stated.
The union also questioned the argument that greater private sector involvement would automatically improve electricity access, particularly in rural communities.
It cited electricity access data from selected African countries, saying Egypt, Tunisia, Algeria, Ghana, South Africa, Kenya and Rwanda recorded higher rural electricity access rates than Nigeria and Uganda, where private companies have taken over electricity distribution.
The TUC further criticised the World Bank’s focus on distribution losses and challenged the Independent Power Producer (IPP) model, arguing that it has contributed to Ghana’s high electricity generation costs and foreign exchange exposure.
“The Bank will have us believe that the IPP model of procuring generation is the only game in town and that Ghana cannot do without it. This is a lie. There are better alternatives,” the union stated.
The TUC also raised concerns over the country’s energy sovereignty and referred to Ghana’s experience with privatisation under the Structural Adjustment Programme, which it said resulted in significant job losses.
“We did not vote for the World Bank to run our country and, for that matter, our energy distribution sector,” the union stated.
The TUC maintained that private sector participation and privatisation were effectively the same in this case.
“We regard PSP and Privatisation as one and the same and that the TUC and its affiliates are intensely opposed to the privatisation of Ghana’s electricity distribution sector,” it concluded.
MA
