Ghana risks losing $150 million if ECG concession deal delays – ACEP cautions

Africa Centre for Energy Policy (ACEP) says Ghana risks losing about 150 million dollars if the country fails to reach a consensus on the Electricity Company of Ghana (ECG) concession agreement by September 2018. According to the executive director of ACEP, Ben Boakye , Ghana must be focused on securing the almost $500 million under the Millennium Challenge Account Compact II regardless the several distractions  that have impeded the process in the last few years . Ghana has signed a $498.2 million Compact II agreement with the MCC. The Ghana Power Compact is expected to provide the country with a financial backbone to improve the performance of Ghana’s power sector to unlock the country’s economic potential, create jobs and reduce poverty ECG workers say government is in a rush to secure funds under the Ghana Power compact because of undue pressure from the United States of America. But energy policy think tank ACEP , says government is expected to work within a specific time frame and risks losing funds if there are further delays . Chief Executive Officer of MiDA, Owura Kwaku Sarfo said he is confident about the prospects of the Ghana Power Compact and its intended benefits to workers of ECG and Ghanaians The Ghana Power Compact between the MCC and the Government of Ghana (GoG) was signed in August 2014, and disbursement was expected to begin in mid-2016 but was delayed due to protest from workers of ECG over possible retrenchment and the government not meeting the terms of the agreement. Government has amended the terms of the concession agreement by giving 51% ownership to Ghanaians and promised that workers would not be laid off. The duration of the concession has also been reduced from 25 years to 20 years.

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By Pwadeberi Denis Wedam|TV3|]]>