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General News of Thursday, 24 October 2019

Source: Kasapa FM

Tell us what next after taking back assets – Jantuah to ECG


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The former Vice Chairman of Public Interests and Accountability Committee (PIAC), Kwame Jantuah, says Electricity Company of Ghana(ECG) must assure the nation of its capacity to manage power distribution services better after the PDS debacle.

“The process of getting ECG into a better sustainable path needs to go on. Stakeholders should tell us what next,” he told Starr News.

National Democratic Congress (NDC) Member of Parliament for Yapei/Kusawgu, John Jinapor, has maintained the importance of Electricity Company of Ghana(ECG) taking back its assets from the Power Distribution Services following the mess that has emerged from the contract.

“What PDS is doing are not rocket science. ECG has the capacity to manage same and must assume operations immediately,” he told Anopa Kasapa Morning Show host, Kweku Owusu Adjei on Wednesday.

For him, it's imperative that a competent board is put together that will ensure that through proper competitive process they’ll appoint new Chief Executive or Managing Director to take over affairs and bring a new life to the state-power distributor.

Mr. Kwame Jantuah, who’s also an Energy expert argues the reason why PDS through the Millennium Challenge Compact(MCC) came to being was that ECG was not being efficient, hence the state-power distributor should prove themselves worthy of managing things better in its second chance.

Meanwhile, he said “the mere fact that PDS used revenue of ECG to pay themselves is fraudulent” and must face the law.

The government of Ghana has cancelled its concession agreement with the private investor for the management of ECG despite opposition by the American government.

The Ghana government argues PDS failed to satisfy some key condition precedents under the contract.

Consequently, the US government has withdrawn the second tranche of $190million earmarked for improvement in Ghana’s energy sector under the millennium challenge compact.

Background

On March 1, 2019, Ghana Power Distribution Services, Ltd. (PDS) assumed operation and management of the staff and assets of the Electricity Company of Ghana (ECG) under a 20-year concession agreement.

According to the Millennium Challenge Compact, Private sector participation is a central reform under MCC’s Ghana Power Compact. This was critical to the long-term sustainability of related infrastructure investments and the financial recovery of the energy sector in Ghana.

The Compact comprised two tranches of funding: $308 million available upon the official start of the current Compact, and a second tranche of $190 million, which was available upon a successfully executed concession agreement, which the United States maintains occurred on March 1, 2019.

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