International Finance Corporation to take over determination of utility tariff if...

After witnessing the devastation caused in the mining sector, the Wassa Association of Communities Affected by Mining (WACAM) has warned that privatisation of Electricity Company of Ghana (ECG) will seal Ghana’s doom.

In a passionate appeal, Hannah Owusu Koranteng is convinced that the privatisation will hand over the control of Ghana’s economy to private international interests.

“That is why I agree with those who say we are going back to neo-colonialism” she said at a forum to discuss the concession agreement of ECG.

Recounting her experience with the private sector, Hannah Owusu Koranteng said despite the promise of development for mining-rich areas in Ghana, the reality shows “just waste, corruption and plunder of our natural resources”.

MiDA background
The Millennium Development Authority (MiDA) was established by an Act of Parliament (Act 702, 709 & 897 as amended). The objectives of the Authority are:

To oversee, manage and implement the Programmes under the Millennium Challenge Account for poverty reduction through economic growth as set out in each agreement between the Government of Ghana and the Millennium Challenge Corporation acting for and on behalf of the Government of the United States of America and for any other national development programme of similar nature funded by the Government of Ghana, a Development Partner or both and to provide for related matters.

Government of Ghana through the Millennium Development Authority (MiDA) is seeking to privatise ECG in a deal to last for 25 years.

MiDA has shortlisted six companies, out of which one will eventually be selected as the private investor to take over the management of the company.

The companies are Manila Electric Company from the Philippines registered and operating in Ghana; Enel S.P.A.from Italy; and Tata Power Company Limited from India.

Workers of ECG are angry at the Authority over what they say is “gross disrespect” shown them in the privatisation of the Company.

National Secretary of ECG Senior Staff, Patrick Benyemi, says the dealings of MiDA regarding the decision to give the nation’s power distributor to a concessionaire have been shrouded in secrecy which would affect the country in the foreseeable future.

A public forum was organised by Integrity Initiative with representatives of MiDA, the Public Utilities Workers Union and other stakeholders in the power sector.

It was a Consultative Forum on Enhancing the Effectiveness of Ghana's Public Financial Management System.

Speaking at the forum in Accra, Madam Hannah Koranteng lamented that government is ready to give out the “most lucrative asset” left in Ghana.

Revealing her suspicions, Hannah Koranteng said she warned the Ghana is inviting a “Trojan horse” when it allowed private sector participation in the power sector in 1997.

Dismissing claims by MiDA that the privatisation is about improving power supply, she argued it is pushing out those who cannot afford electricity – the power-poor Ghanaians.

“The focus is…not about developing Ghana, it is not about reducing people who are dying because of dumsor….but to make profit…I have seen this in mining,” she said.

Madam Hannah Koranteng was emphatic that the whole agenda of MiDA is about making electricity a private good and not a marketable public good that is now is.

Should the concession deal be successful, the determination of electricity tariff will no longer be determined by the Public Utilities and Regulatory Commission, the regulator, she said.

According to her, it will not be determined by the International Finance Corporation (IFC) which is in contravention of PURC Act 538, she said.

Story by Ghana|myjoyonline.com|Edwin Appiah|[email protected]