MiDA refutes claims ECG concession is in danger

The Millennium Development Authority (MiDA) has denied claims made by a civil society group that the ECG concession deal under the Millennium Challenge Account (MCA) Compact II is in danger.

MiDA’s response comes after a civil society group, Coalition of Stakeholders on the ECG Concession Arrangement (COSECA), argued in a press conference held on Wednesday that MCA Compact II – which includes the privatisation of the Electricity Company of Ghana (ECG) – risks being scuttled by several challenges.

But in a statement issued on Thursday, MiDA said it has noted with concern unfounded comments relating to the ECG Private Sector Participation (ECG PSP) process by certain persons.

“MiDA wishes to state categorically that the ECG PSP process is on track, and that the Ghana Power Compact (Compact 2) – of which the ECG PSP Activity forms a part – is not in jeopardy.  The Bidding process for the ECG PSP is ongoing.”

The statement, signed by Pamela Djamson-Tettey – Director, Communication and Outreach at MiDA, continued that it is worth noting that bidders had in January 2018 requested for and MiDA had granted a one-month extension to the original Bid submission date.

“This extension was necessary to give bidders sufficient time to conduct due diligence and prepare their proposals. Consequently, MiDA is pleased to confirm that the deadline for submission of Proposals by bidders remains March 26, 2018,” the statement concluded.

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COSECA’s concerns

The group yesterday warned that the country is at risk of losing the Millennium Challenge Compact II (MCC II) aimed at restructuring the power sector, should the Millennium Development Authority (MiDA) not heed growing concerns surrounding the three companies shortlisted to take over management of ECG.

The MCC II, which is expected to restructure operations of the Electricity Company of Ghana (ECG) under private management and put it on the path of profitability, will see the US government through the Millennium Challenge Corporation (MCC) invest US$500million into enhancing efficiency of the power sector.

MiDA has so far shortlisted three companies, out of which one will be selected by September 2018 to manage the operations of ECG.

But speaking in Accra, COSECA stated: “All indications and information reaching us – including published information – suggest that the Compact is heading for a crash, and we may miss the September 2018 deadline and lose the US$500million plus infusion of capital and expertise to strengthen our power sector”.

The group raised a number of issues challenging the competencies and commitments of the three shortlisted companies, urging MiDA to make the process to select the concessionaire more transparent so as to ensure the country makes the most out of the compact.

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