With regards to the protest by workers of the Electrical Company of Ghana (ECG) against the ECG concession, the Akufo-Addo administration is renegotiating the power compact II deal to give Ghanaians the majority share which would help to eliminate the possibility of job loss.
The vice president Dr Mahamudu Bawumia made this known at the ongoing International Monetary Fund (IMF) spring meeting held in Washington DC.
The Akufo-Addo government, during their election campaign, promised to scrap the levies introduced by the NDC administration to help settle a significant amount of debt in the energy sector. However, the decision to privatise the power sector has been met with backlash as workers fear the potential layoff, often synonymous with privatisation.
In order to avoid this, the new government is currently renegotiating the power compact deal which the NDC administration originally signed in 2014 with the United State government through the Millennium Challenge Corporation (MCC), an independent United States government agency.
Speaking to journalists at the IMF meeting, Bawumia said:
“We talked to the Millennium Challenge Corporation when we got here, we are trying to renegotiate the concession agreed. As you know the NDC government signed on to a compact as far as the concession of ECG is concerned so we have been talking to the Millennium Challenge Corporation(MCC) on that matter and we are renegotiating the agreement in the sense to make sure that the concession agreement has majority Ghanaian ownership.”
Further stressing the importance of a majority ownership by the nation, the vice president added;
“It has to be majority Ghanaian owned. Secondly, we have to have an assurance that there will be no layoffs at ECG as a result of the concession and also it will be managed by Ghanaians. It is good news for Ghana and the energy sector as we have gotten an understanding with the MCC for the three key elements we have insisted on.”
The Power Compact II deal will see the government receive an injection of almost $498 million cash for the power sector. In addition to the ECG, the Volta River Authority (VRA) is another state-owned energy enterprise facing huge debts. However, a whopping $350 million of the total revenue would be directed towards the ECG to improve its efficiency.