Gina Ama Blay, Pamela Djamson-Tettey (both middle) and some staff of MiDA in a pose
The Millennium Development Authority (MiDA) has reassured workers of the Electricity Company of Ghana (ECG) that they will not lose their jobs if the company is entrusted to a concessionaire.
Pamela Djamson-Tettey, Director of Communication & Outreach at MiDA made this known to BUSINESS GUIDE in an interview over the weekend when some officials of MiDA paid a courtesy call on Mrs Gina Blay, Chief Executive Officer (CEO) of Western Publications, at her office in Accra.
She said six foreign companies with Ghanaian partners had been shortlisted out of 11 companies that submitted applications for the ECG private sector participation (PSP) and the winner of the bid would be required to invest a minimum of $100 million every year for the first five years and further investments thereafter.
Under the concession, she said the State would enter into a 25-year contract with the private partner who would have the exclusive right to operate, maintain and carry out investments in ECG for a defined number of years.
One of the bidding criteria for the compact is a requirement for investment.
It is for this reason that $350 million out of the $498.2 million for the compact programme had been allocated to ECG projects.
An International Finance Corporation (IFC) report in December 2014 indicated that ECG loses about $350 million in revenue every year.
The Ghana Power Compact programme consists of six major projects, namely ECG Financial and Operational Turnaround (EFOT) Project, Northern Electricity Distribution Company (NEDCo) Financial Turnaround Project, Access Project, Regulatory Strengthening and Capacity Building project, Energy Efficiency and Demand Side Management Project and the Power Generation and Improvement Project.
Ghanaians support move
In a survey conducted by the African Centre for Energy Policy (ACEP), more than 80 percent of Ghanaians support government’s bid to privatise ECG.
Executive Director of ACEP, Dr Amin Adams, said Ghanaians support for the privatisation was hinged on their quest for reliable power supply, affordable power and proactive power policy.
No tariff increases
Chief Executive Officer (CEO) of the Millennium Development Authority (MiDA), Ing. Owura Kwaku Sarfo, mentioned that the agreement would not lead to increases in electricity tariffs.
Also, he mentioned that over the next five years, 15 percent of ECG workers were billed to retire naturally.
“By the third quarter of 2017, there should be a concessionaire managing ECG operations,” Ing Sarfo declared.
The Public Utility Workers Union (PUWU) last month directed workers of the ECG to embark on a three-day nationwide demonstration to protest against the privatisation of the ECG and demand the review of the Millennium Challenge Corporation (MCC) Compact which they said had the road map for massive lay-offs.
They closed down all offices of the ECG across the country for three hours which left many customers stranded.
By Samuel Boadi