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COSECA raises issues with ECG concession processes | Ghana Business & Finance Magazine

The Coalition of Stakeholders on Energy Concession Arrangements (COSECA), is questioning the processes being used to choose a concessionaire to manage the Electricity Company of Ghana (ECG) under the Power Compact Two.

According to the Coalition, some of the companies bidding to takeover ECG have demonstrated that they are incapable of delivering since they are already engaged with the ECG.

Government is expected to look for a private operator to manage the ECG under the Power Compact Two agreement to enable the U.S government inject 498 million dollars into the company through the Millennium Challenge Corporation.

But speaking at a press conference, a member of the group, Dr. Steve Manteaw, warned that the bidding process must be rechecked to enhance transparency.

“A combination of MiDA’s wavering and the apprehensions about the three players left in the bidding, give us serious cause for concern. Our main concern, therefore is to ask publicly whether MiDA can confirm and assure the nation that this Compact is on course and would not suffer hiccups and possible reversal. We also need their assurance that they will conduct the assessment of bidders in a most stringent and transparent way to ensure we have the best,” he said.

“At least MiDA and the Ministry of Energy need to explain to the Ghanaian people why they shifted due dates, altered requirements, and are allowing players with clear problems to remain in the bidding process.”

The Coalition of ECG Concession Arrangement (COSECA), had earlier in 2017, called for further negotiations on government’s decision to partly privatize the Electricity Company of Ghana (ECG).

The proposed deal will see the ECG being ceded to a private investor for some 20 years.

But speaking on Eyewitness News at the time, the Convener of the Group, Richard Nyamah, argued that the move if not carefully negotiated, will lead to “redundancies” within ECG.

“We want further negotiations and we want the Minister to address the letter we have sent…If we are able to solve this venture thing I think we will jump the hurdles because we do not think as a country we have money to pay redundancies in ECG …,” Mr. Nyamah said when queried on implications of the said deal.

As part of his suggestions, Mr. Nyamah further advised government to allow the ECG enter into a “joint venture” with the private investor to address the likely challenges the deal might create.

“Concessionary means a new company taking over, and we are saying that to go around this redundancy that we don’t have money for, let us find a way of introducing ECG into the whole process. Let them enter into a joint term venture.”

Source: Citifm Online

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