[ 2017-05-23 ]
Akufo-Addo's changes to ECG 'sale' agreement quite impressive - PUWU
The Public Utilities and Workers Union says
changes made by the Akufo-Addo government to the
controversial Power Compact Agreement under the
Millenium Challenge Account Compact II are "quite
impressive" but do not still address their germane
The General Secretary of PUWU, Michael Nyantakyi
said whilst the union is not necessarily against
the compact agreement, they would rather a better
arrangement is adopted instead of a
His comments come hours after the first bidders
conference was held Tuesday to ascertain which
concessionaire takes over the management of
Ghana's electricity distributor.
Six private concessionaires are pitching to take
over the management of ECG for at least years 20
years under a Compact II agreement worth over $498
Under the previous Mahama agreement the new
concessionaire was to manage the facility for 25
years with 51% per cent share to the private
There was also a controversial issue about
involuntary layoffs of workers, five years after
the agreement has come into force.
The workers agitated over the details of the
agreement, particularly the involuntary layoffs, a
development which forced the Mahama government to
suspend the bidders conference.
The suspension did little to help the fortunes of
the NDC in the December election. It lost to the
On assuming office, the new administration has
instituted some changes including making ECG the
majority share owner of the company.
Government will now own 51% of the shares under
the new agreement.
Addressing patrons at the bidders conference,
Energy Minister Boakye Agyarko said the new
concessionaire will be required to manage and
carryout some investment when it takes over the
"The government is not privatizing the ECG," he
said adding, the ECG will still own the assets of
the company but will lease them out to the
concessionaire for a period of 20 years.
Reacting to the Bidders Conference PUWU General
Secretary said government has already signed the
compact II and PUWU has no problem with that.
He was quick to add though that instead of the
concession, govt should have looked at other
modules of managing ECG.
Michael Nyantakyi said government should have
looked areas where ECG had challenges, opt for a
joint venture with the private investor to solve
those specific challenges rather than choosing a
concessionaire to takeover completely the
management of ECG.
He said government is part of the problem,
insisting if the government had paid its debt,
perhaps the power distributor would not have
gotten into the situation it finds itself now.
The PUWU General secretary however wants the
government to include every detail of the changes
made in the old agreement to the new one that will
be signed with the concessionaire.
Source - Myjoyonline.com
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