MiDA Allays fears of ECG Workers

by | Sep 16, 2016 | Local News | 0 comments

The Millennium Development Authority (MiDA) has assured Ghanaians of protecting the ownership of the Electricity Company of Ghana (ECG) and also guarantee workers their job when the concessioner takes over the running of a portion of the company.

In an interaction to update the media on Compact II ProgrammeImplementation in Accra, Ing. Kweku Safo, CEO of MiDA explained that Government still owns ECG, and would ensure that the current workers are retained come what may.

Ing. Safo further added that there is every indication that some ECG workers will be going on retirement when any concessioner takesover the running of the part of company and therefore, the services of more hands might be needed.

It is a 25-year concessioner agreement which has already started, and subject to renewal after 5 years, with a grant of about US$498.2 million of which 469.3 million dollars has been allocated for the project and 28.9 million dollars for administrative functions. Additionally, Government of Ghana will also inject 37.4 million dollars as a supporting fund.

The Compact II, also known as Ghana Power Compact (GPC) provides opportunity to strengthen the entire energy sector, transform ECG into an effective and credible distribution company and free up significant budget resources to apply to other national infrastructure and service priorities.

Ing. Safo argued that though Ghana has done a lot in the electricity sector in the last decades, the sector still has inadequate and unreliable power supply; adding that the problems have been tackled under public management for years, hitherto not resolved, and performance continue to decline.

He was of the view that partnership would transform ECG in areas of technology and efficiency power distribution amongst many other things, including retraining of the staff; and this would help strengthen ECG in the power distribution to meet the current and future needs of businesses, households and the national economy at large.

The event assured that Private Sector Participation (PSP) transaction would provide opportunities for investment by local entrepreneurs, especially when the local content is a key. The CEO for MiDA added that local participation will be both at the ownership and operational level and to be sensitive to local customs and conditions.

At the forum, the key issue was that serious monitoring mechanism would be in place to ensure that either the state or investor does not lose.

The Deputy Minister for Power, John Jinapor, who took part briefly, said the government has taken risk to bring in concessioner/investor in a bid to ensure utility operations are modernized, reduce commercial losses and improve revenue collection rates as well as to reduce technical loss amongst others to the benefit of the Ghanaians.

He also added that the concessioner would be given the free hands to operate well; but if along the line the concessioner does not meet certain conditions the said agreement would be abrogated.  He reiterated that there would be a clause in the final agreement to guarantee ECG workers their job when the concessioner/investor takesover.

Source: Ghana | TheCitizensGhana.com | W. K. Adusu

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