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RADP / Pulse Ghana  >  news  >  business

MiDA agreement kicks in; ECG staff agitation fruitless

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In a statement released by the Millenuim Development Authority, they explain that the agreement signed by the Republic of Ghana and the United States of America on August 5,2014 towards the release of funds under the Compact II has taken effect.

Agitating ECG Workers
Agitating ECG Workers

This means that government is going ahead with the process of handing over the Electricity Company of Ghana to a private concessionaire, despite fierce opposition from the staff of the ECG against the 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.

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READ MORE: Power Supply in Ghana ECG concession won't result in high electricity tariffs - MiDA

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.”

Meanwhile, the implementation of the agreement means that Ghana has agreed to the conditions under the compact agreement which includes the release of running of the Electricity Company of Ghana for 20 years.

Staff of ECG in collaboration with the Public Utility Workers Union staged a five-day demonstration to press home demands for the privatisation of ECG to be halted.

It appears, however, that the agitations did not yield the required results.

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