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25.04.2019 Business & Finance

Energy Ministry Chides NEDCo For Failure To 'Access And Utliise' $54m

Staff Writer
Peter Amewu is the Minister of Energy.Peter Amewu is the Minister of Energy.

The Ministry said that when the government intervened, it assured NEDCo that there would be no job losses nor would there be a replacement of management as a result of the (NFOT) project. Additionally, the following terms were set:

1. Management’s contract would be reduced to two years rather than five.

2. NEDCo would be given the opportunity to participate in the renegotiations of the management’s contract to ensure all parties were satisfied with the outcome.

3. Any issues NEDCo raised regarding the NFOT project would be taken to a transaction advisor who would work to come to a resolution for all interested parties.

“Despite all the efforts made by Government to secure the Compact Funds for NEDCo, the staff rejected the Management Contract mainly on the grounds that it involved the vesting of corporate-wide operational control in the Management Contract and the other related issues contained in the staff groups’ position on the (NFOT) Project,” says the Nana Kofi Oppong Damoah, Head of Communication and Public Affairs at the Energy Ministry.

The Ministry added that during some meetings between the government officials and NEDCo, some staff wore red arm and headbands and waved placards in what seemed to be in protest of the government’s intervening.

Because of NEDCo’s failure to comply with new regulations, the funds meant for NFOT have now been reallocated to the construction of a Bulk Supply Point (BSP) at Kasoa.

“NEDCo would have to seek new funds either by borrowing or other financial arrangements in order to be able to implement projects intended to have been undertaken with the Compact Funds,” the statement concludes “Also, the failure to utilize the Compact Funds will negatively affect people in NEDCo’s catchment area.”