ECG concession deal won't result in high tariffs – MiDA

General News of Tuesday, 30 August 2016

Source: Starrfmonline.com

2016-08-30

EcgFile photo

The Millennium Development Authority has denied claims by the Public Utilities Workers Union that the concession arrangement for ECG will cause high electricity tariffs.

“It is also not the case, as alleged in the press statement of PUWU that high tariff will result from the concession agreement.

“On the contrary, improved performance and reduction in the current loses of ECG should facilitate progressive lowering of tariff,” MiDa said in a press statement.

According to Mida, the concession agreement available for ECG was done with integrity, transparency and good faith as all stakeholders were consulted.

Workers of the ECG last week demonstrated and suspended services for hours over the concession move by government.

They want government to halt the plan and rather pay its huge debts to the power distributor.

MiDA says the fears of the workers are unfounded as the concession move will strengthen the balance sheet of ECG and make it prodective.

“The ECG financial and operational turnarounds project also recognizes the need for significant investment in the power distribution infrastructure and the operational systems of the ECG. It is in response to that need that over US$350 MILLION OUT OF THE US$ 498.2 million for the compact program has been allocated to the ECG”.

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