ECG interlocutory injunction case dismissed

16 November 2016

ECG interlocutory injunction case dismissed

An Accra High Court presided over by Justice Norvice Aryene, has thrown out an inan interlocutory injunction application filed against the government and the the Millennium Development Authority(MiDA) over plans to cede part of the operation of Electricity Company of Ghana (ECG) on concessionary arrangements.

In his ruling Justice Norvice Aryene, stated that the plaintiff lacked power to bring before the court the suit as they have failed to show how the privatization will affect him personally.

The plaintiff, one Saaka Salia who is also a member of the largest opposition New Patriotic Party’s (NPP) sued stating in his aguement that MiDA was not fit to participate as an adviser in the concession arrangement which was to see ECG handed down to private hands.

According to the plaintiff, MiDA's conduct breached Ghana’s laws after it authored and circulated a draft tariff methodology.

Saaka Salia further stated that per the laws in Ghana, it was only the PURC that had the mandate to set or provide guidelines for the determination of tariff as can be found in Act 538. He therefore argued that MiDA had not right to even draft, not to talk of publishing in national dailies.

But the Justice Aryene dismissed the case emphasizing that the plaintiff lacked the capacity to bring before the court the suit as he failed in showing how the privatization affected him.

ECG workers unhappy

Meanwhile the workers of the ECG have over the last three months shown their anger at the MiDA over what they say is "gross disrespect" shown them in the privatization of the company.

In September, ECG workers embarked on a three-day strike over treatments meted out to them by MiDA regarding negotiations leading to the privatization of the company.

According to them their bid to draw MiDA to the negotiation table was dealt a terrible blow following the coming into force of the Ghana Power Compact II treaty signed between the governments of Ghana and United States of America (USA) on August 5, 2014.

The Power Compact II

The Millennium Challenge Corporation is expected to invest up to 498.2 million dollars to support the transformation of Ghana’s power sector and stimulate private investment.

The five-year Ghana Power Compact seeks to create a financially viable power sector that will meet the current and future needs of households and businesses and ultimately help fight poverty across the country.

The compact will play a critical role in Power Africa, the U.S. Government’s initiative to double access to power on the African continent.

The Ghana Power Compact is the largest U.S. Government transaction to date under Power Africa and will serve as an anchor for increased American engagement in Ghana.

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

Source: Business and Financial Times