According to Mr. Jonathan Nash, the MCC was considering an investment in Togo, but had to postpone it because of the ongoing political crisis in that country.

The acting CEO explained that “last fall, we finalised preparations for this programme (in Togo). It is a threshold programme, which is smaller than the Compact. However, given the challenges on the ground, and the unfolding political situation, our board of directors decided to postpone approving the programme.”

He continued, “One of the things we were looking for was the launch of a dialogue. Because of your leadership, and what you have done on the ground, we are now prepared to take this investment to our Board of Directors in the coming weeks. Assuming that things continue to move in a positive direction, hopefully our board will approve it, and we can begin an investment to Togo.”

Mr. Jonathan Nash told President Akufo-Addo that “on behalf of the MCC, we want to thank you for your leadership.”

Mr. Jonathan Nash conveyed his appreciation on Saturday, February 24, 2018, when he paid a courtesy call on President Akufo-Addo, ahead of the Winter Meeting of the National Governors Association of the United States of America, where the President will become the first African leader to address the 50 US Governors at an NGA meeting.

On his part, President Akufo-Addo noted that the interests of Ghanaians and of Ghana’s political leaders are in the peace and stability of Togo, and the freedom of the Togolese people, which, he explained, was not negotiable.

The President was hopeful that sooner rather than later, a solution will be found to the impasse in Togo, so that peace, stability, the consolidation of democracy and the rule of law, which are the demands of the Togolese people, will be realised in Togo.

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By: citifmonline.com/Ghana

The post MCC CEO commends Nana Addo for Togo mediation appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the MP, who was also a Deputy Power Minister in the Mahama government, Nana Addo’s announcement of amendment to the Private Sector Participation (PSP) compact of the Electricity Company of Ghana (ECG) with the Millennium Challenge Corporation (MCC), has left room for speculation about the deal.

[contextly_sidebar id=”RyQIY0pgd9tzcF6A4dvNyUmgO1zHdsiW”]“The first question is, has this agreement been effected or is it just a proposal? I have heard some government spokespersons indicate that it is a proposal. Others have indicated that it is changed in the agreement,” he noted on Eyewitness News.

Mr. Jinapor thus said he has written to the MCC and Millennium Development Authority (MiDA), “to seek confirmation of a change in this agreement.”

Minority stake for concessionaire would not work

The MP noted that, under the Mahama administration, during the negotiations with MCC and MiDA, they considered offering a minority stake, but indications were that” the market was not going to be responsive if we insisted that the concessionaire should own a minority stake because the concessionaire was supposed to inject a minimum of $250 million and also run ECG effectively and efficiently.”

“What they indicated based on the findings and the research we conducted was that, if you say that the concessionaire should own a minority stake, it [the deal] would not work,” he added.

In view of this, Mr. Jinapor said, “first of all, we need clarification from MiDA and we need confirmation from the MCC whether indeed there has been an agreement to change the initial agreement, such that the concessionaire will own only 49 percent, which will be a minority stake, and if that is so, what has informed that change in position?”

“I think that within the shortest possible time and with a sense of urgency, the MCC and MiDA must come clean on this subject matter because it is a national issue. If they have reviewed the agreement, if they have changed it, they should let us know.”

What Nana Addo said about the agreement

Under the agreement, which is known as the Power Compact II, the government is expected to allow about 80 percent private sector control in the ECG for the country to benefit from a cash injection of about $1 billion over a period of 5 years.

But speaking to Ghanaian workers at the May Day parade in Accra, President Akufo-Addo maintained that, government was targeting more than the 20 percent control agreed by the Mahama government.

“Government has amended the terms of the concession agreement to require that one; Ghanaians own at least 51 percent of the concession. Two, there should be no involuntary layoffs as a result of the concession,” he stressed adding that, “the term of the concession will be reduced from 25 years to 20 years”

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Clarify changes to ECG privatization compact – John Jinapor appeared first on Citi 97.3 FM - Relevant Radio. Always.

The advice of the Board would determine government’s next line of action, he said, adding that the board should ensure that the Power Compact II was completed within schedule.

[contextly_sidebar id=”CLReoEepFdliWaj6QCuDXFjNfudhw2zr”]The President on Monday swore in the 11 member board headed by Professor Yaa Ntiamoah Badu at the Flagstaff House.

At the ceremony, he said “there is a major task before you which is to help resolve the future of the critical part of this compact; which is the private sector solution to the development of the electricity corporation of Ghana which is on the table.”

“We believe it is necessary for us to have a look at what is on the table and make sure the various challenges that there are to the progress of the compact involved in the Electricity Corporation’s role and the manner of its law are resolved.”

“Government has already started doing so. Some of the key people who are involved in that are also members of your board and hopefully, the government’s take on how we go forward will be out and our interest is making sure that this compact is implemented successfully so that the people of Ghana would benefit from it,” President Akufo-Addo added.

Compact 2 agreement signed

Ghana and the Millennium Challenge Corporation of the US government signed the second Compact worth $498 million in October 2016.

The agreement brought to total $1.4 billion received by the government to be injected into the country’s energy sector geared towards making the ECG more efficient.

Some staff of ECG expressed fears they would be laid off amidst rumours of the privatisation of the company, but the MCC has insisted that the company will not be privatised but be strengthened to work more efficiently.

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

The project includes ECG Financial and Operational Turnaround Project, NEDCo Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, and Access Project.

The rest are Power Generation Sector Improvement Project and Energy Efficiency, and Demand Side Management Project.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Ensure clear road map on ECG concession – Nana Addo to MiDA board appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Millennium Development Authority (MiDA) signed an agreement with government to cede part of ECG to private partners under the Power Compact II.

But ECG workers had accused MiDA of acting in bad faith in the entire cession process

Mr. Asante Yeboah told Citi News the deal is not in the interest of Ghana and must be reviewed.

He explained that the petition seeks “to indicate to them and also make it clear to these individuals that there ought to be a full scale investigation into the whole process leading into this ECG concession arrangement.”

Compact II in full force

Meanwhile, the Power Compact II earlier this month came into full force despite a law suit against MiDA over the concession of the ECG.

But the Public Utility Workers Union (PUWU) had insisted that MiDA acted in bad faith in announcing the deal because they had objections over aspects of the agreement.

According to the General Secretary of PUWU,  Micheal Adumatah Nyantakyi, the ECG can be made profitable without necessarily handing over the company to a private partnership arrangement under the compact two.

ECG workers protest

ECG workers embarked on a number of exercises including a sit down strike and demonstration in a bid to protest the concessionary arrangement.

Ghana to get over 498m dollars 

Ghana signed the Power Compact with the United States of America acting through the Millennium Challenge Corporation (MCC), an independent United States government agency, on the sidelines of the US Africa Leaders’ Summit in Washington DC on August 5, 2014.

The Ghana Power Compact would provide Ghana with a grant sum of four hundred and ninety eight million, two hundred thousand United States Dollars (US$498,200,000) to improve the performance of Ghana’s power sector, unlock the country’s economic potential, create jobs, and reduce poverty.

About US$350 million of the grant is being invested in ECG to make the country’s power distributor operationally and financially more efficient.

The Compact is being implemented by the Government of Ghana through the Millennium Development Authority (MiDA).

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By: Godwin A. Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

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