Power Company Government renegotiating ECG concession to ensure majority Ghanaian ownership – Bawumia

Under the Compact II agreement, the US government is pushing Ghana to privatise ECG for 25 years in order to benefit from a cash injection of $498 million.

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play Dr Mahamadu Bawumia
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Vice President Dr Mahamadu Bawumia has said the government is renegotiating the Millennium Challenge Corporation (MCC) Power Compact II agreement to ensure majority Ghanaian ownership.

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“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 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,” Bawumia said an IMF spring meeting.

Under the Compact II agreement, the US government is pushing Ghana to privatise ECG for 25 years in order to benefit from a cash injection of $498 million.

The agreement has gathered strong opposition from the Trades Union and The Public Utilities Workers Union who argue that the concession is not in the interest of Ghana.

Their key concern is that many ECG staff will be fired when ECG is privatized.

But Bawumia has assured the workers of ECG that no one will be laid off under the Millennium Challenge Corporation (MCC) Power Compact II.

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"It has to be majority Ghanaian owned. Secondly we have to have an assurance that there will be no lay-offs at ECG as a result of the concession and also it will be managed by Ghanaians. So those are the elements that we have insisted on and also we have gotten an understanding on these elements,” he said.

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