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No worker will be laid off under ECG concession - Pres Akufo-Addo reassures

By Clement Edward Kumsah
President Akufo-Addo
President Akufo-Addo
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President Akufo – Addo has re-assured that no worker of the Electricity Company of Ghana (ECG) will be laid off under the ECG concessionary agreement.

Delivering a speech to mark this year's workers Day in Kumasi, President Akufo-Addo said his government is taking a second look at the second Millennium Challenge Corporation (MCC) Compact programme in order to eliminate clauses that could lead to job losses.

The Ghana Power Compact signed between the MCC and Ghana government in 2014 has remained a controversial issue.

The agreement was expected to improve the management of ECG as well as open the country’s energy market to independent power producers.

As a result, the amount of $350 million out of the total $498.2 million was earmarked to be channeled into revitalizing Ghana’s main power distributor, ECG.

It was also expected to upgrade power infrastructure and strengthen the capacity of ECG to improve its service to customers.

Speaking at this year’s Workers Day in Kumasi at the Baba Yara Sports Stadium on May 1, 2018, President Akufo- Addo reassured that, after the signing of the Memorandum of Understanding, no worker of the of the ECG will be negatively affected.

"I remember that During last year’s May day Parade, one of the issues that took a center stage was ECG concession and the fear of laid-offs of Ghanaian workers. You will recall that, in my address, I pledged that the terms of the agreement will be in Ghana’s interest, and I am happy to report today that, the existence of a MoU between Organized Labour, the Ministry of Energy and the Ministry of Employment and Labour Relations, which will ensure that no worker of the ECG will be negatively affected or laid off as a result of coming into effect of the ECG concession".

President Akufo-Addo also added that the majority of shares of the ECG concessionary, i.e. 51% after the signing of the agreement, are in hands of Ghanaians.

Philippines-led Meralco Consortium to takeover ECG

Meanwhile,  Meralco Consortium, led by the Manila Electricity Company of the Philippines, has been selected by the Millennium Development Authority (MiDA), to manage the ECG, under the Power Compact II agreement.

MiDa said in a statement on Thursday, 19 April that, Meralco Consortium is known to have the highest combined technical and financial score, and has therefore, been designated as the preferred bidder.
Meralco has a distribution network which covers a third of the Philippines and serves over six million customers.

BXC Company Limited and Meralco Consortium were the two bidders after the CH Group withdrew its bid.

Under the Power Compact, six projects will be implemented to address the root causes of the unavailability and unreliability of power in Ghana.

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