Compact II provides for review --- PUWU

14 February 2017

Compact II provides for review --- PUWU

The Public Utility Workers’ Union (PUWU) of the Ghana Trade Union Congress (TUC) has reiterated that it is not too late to renegotiate aspects of the US Millennium Challenge Second Compact with the country.

A statement copied to the B&FT and signed by Michael Adumatta Nyantakyi, Secretary General of union, read, “PUWU regards the comments by Ambassador Michael Jackson as misleading and calculated attempt to tacitly blackmail the new government and throw dust into the eyes of Ghanaians. The Compact II has provisions in the Preamble and Article 6 for suspension, termination or modification of any project or activity under the programme.

If government has found parts of the compact inimical to the interest of Ghana, which the proposed concession is, prudence dictates that it should call for renegotiation.”

According to the union, the US envoy made comments which suggest that the deal could not be renegotiated, inan apparently response to calls by the Senior Minister, Yaw Osafo Maafo, for a renegotiation of the Compact, in particular, the privatisation of ECG.

The Compact II seeks to revamp Ghana’s energy sector with a condition compelling the government to introduce private sector participation in the Electricity Company of Ghana, which led the previous government to give ECG out on concession for 25 years.

“PUWU has consistently opposed the concession of ECG for 25 years,” the statement noted, adding that, the privatization of ECG is a “Trojan Horse” that the new government should be wary about.

The statement added, “If for only a grant of US$498.2 million, out of which about US$340million will go to ECG, Ghana is being pushed to lease the ECG, whose current total assets far exceeds this paltry sum from the US, then we would be shortchanged should this programme under the Compact be allowed to materialise. Why should we allow a compact of 5 years duration to compel us to go into concession of 25 years?”

Going forward, PUWU advised that the major obstacles to ECG’s profitability area lack of efficient management and political interference, hence government should address these to allow the company will operate efficiently and profitably.

Source: Business and Financial Times