PSI affiliates oppose the privatisation of electricity in Ghana

23 May 2016
Demonstrations against energy privatisation
PSI affiliates the Public Utility Workers Union (PUWU) and the Public Services Workers Union (PSWU) have called on the Government to stop the privatisation of Electricity Company of Ghana (ECG). Following PSI’s advice, the two unions are collaborating to advocate against the concession.

The PUWU and PSWU declared in a joint communiqué issued on 13 May, at the end of a meeting held in Accra:

“We reiterate our strong opposition to the planned privatisation programme under which ECG will be leased to a foreign entity for 25 years as a pre-condition for accessing $498.2 million from the United States Millennium Challenge Corporation under the Compact II.”

The unions are reviewing the process towards the “privatisation” of ECG, in the form of a concession, which is being implemented by the Millennium Development Authority (MiDA), as a condition to access funds from the Millennium Challenge Corporation of the United States.

“We have observed that the imposition of the private sector participation in the ECG is not only an affront to Ghanaians, but also the perpetration of a deception about the challenges in the power sector, many of which are a result of political interference in management,” states the communiqué.

PSI affiliates are calling on the Government and the Millennium Development Authority (MiDA) to immediately halt the privatisation process and explore other viable alternatives to transform ECG.

In its position paper published on 22 July 2015 in the Daily Graphic, the Public Utility Workers Union declared:

“We strongly believe that this whole concept of a concession to make ECG a credible off-taker of power is a mere ruse to throw dust into the eyes of Ghanaians and package a viable national asset for foreign “privateers” whose major concern is profit for their shareholders.  There is a Genuine Home Grown Solution to address the challenges facing the power sector; Government should pay its indebtedness to ECG, review the tariff structure to cover all relevant costs, reduce political interference in the operations of ECG, and to appoint a young, competent and vibrant Ghanaian with the requisite managerial and technical expertise to run ECG on defined performance indicators”.

It is to this effect that during the May Day celebrations, red flags were hoisted at the premises of ECG across the country to stress workers’ disapproval of the energy concession.

 

 

 

 

Also see