PRIVATE SECTOR PARTICIPATION IN ECG: STAKEHOLDER CONSULTATION MEETING WITH THINK TANKS. FEEDBACK AND INPUTS FROM IDEC Ghana Integrated Development & Empowerment Centre (IDEC Ghana) is a human rights and development organization with the overall goal of protecting and promoting the rights and the total well-being of all; giving much focus on the fight against social injustice, ensuring the respect for human rights- liberty, dignity and better living conditions for women, children and youth, physically challenged and disadvantaged minority groups. As a Human Rights and a Development Organization, we owe it a responsibility to represent and present the views and concerns of the workers of Ghana especially ECG workers (the workers’ right to job security), the concerns of barbers, hairdressers, cold store operators and other Small Scale Industries and the ability of majority of ordinary Ghanaian to pay tariffs and enjoy regular and consistent supply of electricity if the PSP in ECG policy is to be implemented. We at IDEC Ghana are first of all grateful to the organizers of this very important Stakeholder meeting. Our hope and prayer is that all the views and concerns as presented and discussed at the meeting will be fully considered in the final document for implementation. The background to the proposed PSP in ECG as presented by the committee indicated the major challenges that confront ECG of which two options where outlined as possible solutions. The Options: Concession and Partial Privatization 1. Concession Looking at the details under the Concession, we at IDEC Ghana and many other ordinary Ghanaian we consulted on the issue believe that the risks under the Concession appeared to be much more higher compared to the Partial Privatization. The reasons are simple, giving out ECG in its entirety to a private investor (not completely familiar with the Ghanaian terrain) for twenty to thirty years while the State folds its hands or arms in prayers expecting the private investor(s) to take Ghanaian out of the current electricity challenges will be too much of a risks. Secondly, the magnitude of the challenges and the capital investment needed to turn over the fortunes of the ECG might be over and above the capacity of a single or a couple of private individuals or investors. Thirdly, that since electricity or power issue is a national security issue it is too risky to leave ECG entirely in the hands of a single or a couple of private individuals or investors especially moving into 2016 – an election year. 2. Partial Privatization The Partial Privatization seems to be a strong option that is receiving much more approval from our consultations and discussions with the people, a view we at IDEC Ghana share to be the best available options. There is the likelihood that a combination of forces, resources, modern technology and skills from both the State and the Private Investor will bring out the best. The risk and issues of national security are lesser since the State has some amount of say and control of the system. Issues of abuse of power, exploitation of consumers and unilateral decisions can all be checked through continuous dialogue between the parties and mutual respect for the rules and regulations governing the partnership agreement. Moving into 2016, Ghanaians are more likely to trust this partnership and therefore reducing fear and anxiety that may be associated with the sole private ownership of ECG. And again, the State is more likely to consider the interest and protect the rights of workers of ECG and consumers in general more than a private investor will consider. MAJOR CONCERNS However, in view of the above preference there are some concerns expressed by those we consulted. We at IDEC Ghana are also concerned about the rights of the workers and consumers in the implementation of this PSP policy. 1. The Right of the ECG workers to work and to job security, 2. Retrenchment issues and mechanism put in place to address them, 3. Tariffs issues, and 4. Consistent and regular supply of power to the consumers even if they will have to pay a little more than they are paying at the moment to get power. Even though most of these concerns were discussed during the stakeholder meeting, we think that it is worth reminding ourselves of the concerns of the people and planning ahead to mitigate any negative effect on the people. Our Recommendations We at IDEC agree with the majority of the people we consulted that the whole idea of PSP in ECG is a good one and that the partial privatization is the way to go. However with a policy like this, it is a hidden truth that some workers of ECG will be retrenched even though the Chairman of the committee insists it is not an option at least not for now, we think the following should be considered in dealing with the existing staff of ECG; 1. That retrenchment of staff should be considered only as a last resort, 2. Capacities of existing staff should be enhanced to meet expected standard. However, those staff whose capacities or skills are below expectations should not be sacked or laid off but rather be assisted to improve. 3. That those who must go home by all means must be treated with respect, treated according to the laws of Ghana especially the Labour Law and must be made to go home in dignity by adequately consulting with the workers for an agreed term of compensation. 4. There should be an avenue created for the workers to direct their grievances for redress. 5. Tariff should be considered having in mind the current economic and social conditions of the Ghanaian. 6. Finally, the consultation should be continued not only at the designing and formulation of the policy stages but through implementation so that collectively challenges identified during implementation can easily be addressed. Conclusion Power supply is identified as a key binding constraint to Ghana’s economic growth. Even though the source of Ghana’s power crisis rests not only with the distribution sector, but generation and transmission as well, strengthening ECG operationally and financially is a very critical and visible part of the solution. As discussed earlier as part of the challenges facing ECG, currently ECG is not paying all its debt for the power purchases. This affects generation and by focusing on ECG it is expected that a solid foundation will be laid for making improvements across the entire energy value chain. In view of the above, we believe the way forward in this crisis situation is through the Private Sector Participation in ECG by Partially Privatizing ECG and ensuring that the rights of workers and consumers are not abused and exploited. We pray that the parties involved in this policy design and implementation keep to the Guiding Principles of the Compact. We are made aware that the compact will be guided by the following government principles for PSP in the energy sector. • Sensitivity to local customs and conditions, including consideration of issues related to job security; • Assets to remain in Government ownership or to have joint ownership through a PPP arrangement; • Consultation with key stakeholders to aid GoG decision-making and promote consensus; • Ensuring long-term sustainability of the sector; • Ensuring competitive of business and affordable tariffs for consumers, especially for the poor; • Building off the success of this Project, increase competition in the energy sector at the commercial or retail levels. These guiding principles are sport on and it is therefore appropriate for Civil Society Organizations including IDEC Ghana to keep an eye on these principles during the implementation of COMPACT II. ………SIGNED………… Samuel K. Agbotsey Executive Director, IDEC Ghana
Posted on: Wed, 14 Jan 2015 21:21:31 +0000
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