Reviewing ECG power compact will attract consequences – Minority Leader

The Minority Leader in Parliament has raised red flag over decision by the Akufo-Addo-led government to review the ECG concession agreement. Government of Ghana signed the Ghana Power Compact with the Millennium Challenge Corporation (MCC), an independent United States government agency on August 5, 2014. Under the Power Compact agreement, government was expected to allow about 80 percent private sector control in the Electricity Company of Ghana (ECG) for the country to benefit from a cash injection of about $1 billion over a period of five years. President Akufo-Addo addressing the May Day parade on Monday explained that government will amend the concession agreement to benefit Ghanaians. “One, Ghanaians own at least 51% of the concession; two, there should be no involuntary lay off as a result of the concession; three, the term of the concession would be reduced from 25 to 20 years”. But, Speaking with 3FM News, Minority Leader, Haruna Iddrisu, indicated that the move by government will attract some dire consequences on the whole agreement. “In terms of the engagement with MIDA and the US government, is President Akufo- Addo today talking about 51% stake for Ghanaians? He ought to be properly briefed by his minister for energy and the attorney general that there is already an international commitment of $458, 000,000 without the government of Ghana which has been rectified by parliament in accordance with article 75 of the constitution and considered. Therefore are you telling the US Government you want the renegotiation of the MIDA support program for reforms within the energy sector?” he questions. He added “I don’t know how the US Congress will take it, was privileged to be part of the ministers who supported president Mahama in the US African summit. The prelude to it was the signing of this agreement after extensive consultation was done and I know the US congress have taken a position on the matter and it is not likely that they will open it for re-negotiation”

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By Collins Essuman |3FM 92.7||Ghana]]>