MiDA dismisses claims of ECG workers
The Millennium Development Authority (MiDA) has categorically dismissed claims of job losses in the private sector participation in the affairs of the company under the second compact of the Millennium Challenge Corporation of the USA by employees of the Electricity Company of Ghana (ECG).
Advertisement
Rather, MiDA contended that the decision of the government to proceed with a long-term concession arrangement with the ECG was taken after extensive consultations with a broad range of stakeholders, detailed technical reviews, in-depth study and a thorough analysis.
Defence
Debunking the claims in a press statement issued by the Director of Communication and Outreach of MiDa, Ms Pamela Djamson Tettey, the Authority said a number of viable options were interrogated for private sector participation in the ECG before the concession arrangement was selected.
It stated that the entire compact had been designed to bring to Ghanaians adequate and reliable power supply to support the economic growth.
Staff of the ECG last week embarked on a demonstration across the country to protest private sector participation in the ECG but MiDA described the action by the Public Utility Workers Union (PUWU) to lay down their tools as unfortunate because it had implications for families and businesses.
It said the requirement for investment was one of the bidding criteria in the ECG private sector participation tender for which reason the government would ensure that the level of that investment was adequate to meet the needs of the distribution system.
Investment
According to the statement, the ECG Financial and Operational Turnaround Project recognised the need for significant investment in the power distribution infrastructure and the operational systems of ECG.
“It is in response of that need that over $350 million out of the $498.2 million for the Compact Programme has been allocated to the ECG projects,” the statement added.
Dismissing claims by the PUWU of high tariffs from the concession arrangement, the statement explained that on the contrary, improved performance and a reduction in the current losses of ECG would facilitate progressive lowering of tariffs.
Jobs protected
The statement said the government had gone to great extent to ensure that the jobs of all ECG staff were duly protected for a period of five years and expressed regret of allegations by the PUWU that there would be job losses.
“The reality is that the concession arrangement will create more jobs in the power sector. An improved distribution system and a credible distribution operator in the form of the ECG PSP provider will also facilitate the further expansion of power generation in Ghana,” the statement added.
That reality, it noted, would also result in more reliable power supply, industrial expansion and increased employment opportunities for all Ghanaians.
Local participation
On local content as far as the concession arrangement was concerned, the statement said the government had made clear its determination to ensure a high-level participation at both the operational and equity levels, an integral part of the transaction.
It made known that Ghanaian equity participation, which might begin at a determined minimum, would be required to increase over time for Ghanaians to have an increased control of the ECG.
The government, according to the statement, had also approved employee share ownership in the future operations of ECG “far from there being a threat to local content as claimed by the PUWU press statement”.
“MiDA wishes to put on record that it acted with integrity, transparency and good faith in its operations and interactions with all stakeholders, and in the particular instance of the ECG PSP transaction, MiDA has worked assiduously to ensure that the process is open, transparent, fair, competitive and inclusive,” it added.
