The concession agreement between the Government of Ghana and consortium of investors led by Manila Electric Company (Meralco) for private sector participation in the Electricity Company of Ghana (ECG) take effective on 2nd August, 2018..
Mr Boakye Agyarko, Minister for Energy, revealed when he addressed the media after he laid the agreement on the Floor of Parliament for ratification on Tuesday July10, 2018.
According to the Minister, “The transaction becomes effective August 2nd, 2018. It is on becoming effective that the second tranche of funding of about $192 million is released to ECG to tackle very critical and important infrastructural development.”
He explained that, the concession agreement was executed in accordance with terms of the Millennium Challenge Compact between the United States and Ghana.
Under the agreement, Mr Agyarko said, the private partner would invest an amount of $580 million, while the US government also investing an amount of $498 million.
The Energy Minister noted that, cabinet has since given its blessing to the deal, stating that, “we are now at the stage of seeking parliamentary ratification which I believe parliament will graciously consent”.
Mr Agyarko also assured that no Ghanaian worker would be laid off and that persons currently working with the ECG would enjoy when the agreement kicks off in August this year.
“All ECG workers who would be transferred to the new company or the concessionaire would keep their jobs and their collective bargaining agreements negotiated previously and that there will be no involuntary redundancies during the entire period of the concession,” he added.
Mr Agyarko said, unlike the previous agreement, the current government has worked out to ensure that “the Ghanaian participation component be increased from 20 percent to 51 percent”.
He further assured that, the private participant do not have absolute right to determine the billing system and therefore laid off the fear of power bill increment after the take over in August this year.
Source: the republic news online.com/Felix Engsalige Nyaaba