Jinapor writes to MCC; seeks clarity on “renegotiated ECG concession deal”

Former Deputy Power Minister, John Jinapor has asked the Millennium Challenge Corporation(MCC) to clarify the terms of a renegotiated arrangement between the Corporation and the Government of Ghana on the ECG concession agreement.

President Nana Akufo Addo during the May Day celebrations in Accra announced that his government is reviewing the Millennium Challenge Corporation (MCC) Power Compact II agreement on the concession of the Electricity Company of Ghana (ECG).

According to him, his administration is working to ensure there’s majority Ghanaian ownership of the deal and reduction of the agreement term from 25 to 20 years.

“We have stated that we are taking a second look at the ECG compact. We are driven by two consideration. We are as concerned as the workers that the reform should not lead to involuntary job loses and we should find a long term solution to the nation’s electricity problem. In this regard, [the] government is amending the terms of the agreement of the concession agreement to require that: 1. Ghanaians own at least 51 percent of the concession. 2. There should be no involuntary layoffs as the result of the concession. 3. The term of the concession will be reduced fro 25 to 20 years.”

Speaking on the latest development in an interview with Accra-based Citi FM, Mr. Jinapor questioned the propriety of the seeming unilateral change of the agreement, given that there have not been any clear position from either MCC nor MiDA on the supposed new arrangement being claimed by the President.

He said since the original terms were entered into by both parties, it is crucial to seek clarity on the matter from MCC as well.

“Agreements are not renegotiated unilaterally. The fact that there is an agreements means that there are two or more parties. And so the first question is that has this agreement been effected or it is just a proposal. I have heard some government spokespersons indicate that it’s a proposal, others indicated that its a change in agreement.

I have written and I’ll be delivering a letter formally to MCC and MiDA tomorrow to seek confirmation of a change in this agreement because the fact that it is an agreement presupposes that it’s between two or more parties I think it is important that within the shortest possible time and with a sense of urgency, MCC and MiDA come clear on this matter because this is a national issue.

If they have repealed the agreement or they have changed it, the people of Ghana require that information.”