The Energy Minister says the assets of the Electricity Company of Ghana (ECG) will be leased to a private investor for 20 years to manage.
Boakye Agyarko says the power distribution company will still remain the asset of the government and the concessionaire is expected to pay for the assets of ECG.
“It is therefore imperative that ECG updates and hands over a credible list of assets to the concessionaire,” he said at a ceremony to swear in a new eight-member Board.
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According to him, a new project is underway for a technical and conditional assessment of ECG’s asset. He also brought to the fore many urgent issues that the Board must tackle immediately, singling out the concession issue.
Mr Agyarko said the timely completion of the project is crucial to the success of the Private Sector Participation (PSP) transaction.
The PSP transaction envisages that the ECG will be an active asset owner and the Board must ensure that the final request for proposal and all complementary document are adequately provided for ECG to play an adequate or effective monitoring role.
He urged the Board to give the company their maximum attention and ensure that what will remain of ECG is reorganized into a viable company capable of its active oversight role for the benefit of the country.
Ghana signed the Power Compact with the United States of America acting through the Millennium Challenge Corporation (MCC) in 2014.
The Power Compact which is being implemented by the government of Ghana through the Millennium Development Authority (MiDA) will make available a grant sum of $498,200,000 to be injected into Ghana's power sector to improve performance in the sector.
About $350 million of the grant is being invested in ECG to make the country’s power distributor operationally and financially more efficient, while the rest of the grant would be used to unravel the country’s economic potential, create jobs, and reduce poverty.
The coalition of stakeholders on the Electricity Company of Ghana (ECG) concession arrangement has called on the government to review the Millennium Challenge Corporation (MCC) Compact II.
After a consultative meeting, the stakeholders said that there were challenges with the $498 million MCC Compact II passed by Parliament under the certificate of urgency which did not allow for further reading.
Vice President of think tank, IMANI Ghana, Kofi Bentil, presenting the report of the legal team of the coalition, said although the team supports the MCC Compact II, Article 7.1, which states that when the implementation process begins it shall not be subject to the laws of Ghana, restricts government and gives the investors - the US government, through the Millennium Development Authority (MiDA) - powers to do anything.
Source: myjoyonline.com
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Can Ghanaians know which assets of ECG govt is referring to? Is it the distribution network? Because that is what we know was linked to the compact, Ghana's electricity distribution network for $500 million dollars, when it is worth billions, and expected to be worth even more, as Ghana and the rest of the world adapts clean energy and renewable energy solutions such as solar, and greening of deforested landacape, in the face of climate change. Need we remind the Min, Ghanaians have rejected it?
Look I agree 100%....until it's privatise they continue to render poor services in all corners. Wait you become a victim then u will understand Go to the offices of ECG across ghana and u will agree that ECG must be privatise
Why do we go to school in Ghana? What is the essence of our universities and other several institutions? I am at a loss why we cannot do anything right in this country after several years of producing professors, doctors, managers, administrators, police officers, army officers, etc., etc. in many fields of study. Eventually, some small boys and girls from somewhere, more or less invade our territory to manipulate, cajole, instruct, push us around to do what we are supposed to do and hold sway over our resources. Can somebody convince me, we are capable 'homo sapiens', occupying this part of the world? My sadness knows no end. What a calamity!
This is not only bad but very sad. After 60 years of independence, Ghana cannot manage its own electricity needs, we now need an external source to manage it for us - at what cost? We cannot make roads or railways, mine our gold, diamonds, bauxite, manganese (the Canadians, British, South Africans and Chinese are there), we cannot provide accommodation for our police and soldiers (the Koreans were going to do it), we cannot MANAGE our electricity (the Americans will do it for us) What are we really doing ourselves - just borrowing? Ghana has lots of brainy people both at home and in the diaspora - why not give them a chance? Why did Kwame Nkrumah set up the University of Science and Technology (KNUST), the Tarkwa School of Mines and the many Polytechnics, all of which have produced very brainy scientists working for other countries? OR is there something more to all the out-sourcing that Ghanaians are not supposed to know?
i guess u didnt read it all or perhaps you lack understanding of the english language, something that has already started and has gotten to its stage of implementation how do you blame it on NPP, besides have you listened to the ECG themselves on this matter or its just your propaganda way. who cares if you wont vote again as if you even voted for NPP.
NO THIS CANT BE TRUE..THIS IS NOT CERTAINLY COMING FROM THE NPP NEVER..WE KICKED AGAINST THIS WHEN MAHAMA WANTED TO DO THIS...SO WHY DO YOU WANT TO DO THE SAME THING...OR IT IS RIGHT WHEN ITS YOU...THIS IS NOT FAIR PLEASE...SO WHERE IS THE CHANGE WE VOTED FOR...WE WILL VOTE AGAIN TO CHANGE THE CHANGE PERIOD