The General Secretary of the Industrial and Commercial Workers Union (ICU), Solomon Kotei wants government to come clean on the Millennium Challenge Corporation (MCC) Power Compact II agreement on the concession of the Electricity Company of Ghana (ECG).
Albeit an ongoing review of the agreement by government, the new arrangement still leaves much to be desired as there is no total disclosure of the terms being considered by government with the investors, according to Mr. Solomon Kotei.
President Nana Akufo Addo during the May Day celebrations in Accra announced that his government is reviewing the Millennium Challenge Corporation (MCC) Power Compact II agreement on the concession of the Electricity Company of Ghana (ECG).
According to him, his administration is working to ensure there’s majority Ghanaian ownership of the deal and reduction of the agreement term from 25 to 20 years.
“We have stated that we are taking a second look at the ECG compact. We are driven by two consideration. We are as concerned as the workers that the reform should not lead to involuntary job loses and we should find a long term solution to the nation’s electricity problem. In this regard, [the] government is amending the terms of the agreement of the concession agreement to require that: 1. Ghanaians own at least 51 percent of the concession. 2. There should be no involuntary layoffs as the result of the concession. 3. The term of the concession will be reduced fro 25 to 20 years.”
But in an interview with Fiifi Banson on Anopa Kasapa on Kasapa 102.5 FM, Mr. Solomon Kotei argues it is likely the majority Ghanaian ownership of the deal, currently quoted as 51/49 cannot be retained by government.
“What we know is that majority of the Joint Venture Agreements we’ve had in this country, eventually leaves government with a smaller stake.
“What we should be concerned with is that staff of the state-power distributor-ECG have said they can manage the company well kicking against the concessionary move. The foreign investors are not the people going to do the job, it’s our own local people. We still need a wider consultations on the move, so that we can be sure of the future of the ECG.”
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