TUC calls contracts with IPPs one of the factors behind Ghana’s energy problems
Kwabena Nyarko Otoo, Deputy General Secretary of the Ghana Trades Union Congress (TUC), said that contractual arrangements with independent power producers (IPPs) are one of the factors behind the country’s prolonged energy-sector problems. He said this on JoyNews’ Newsfile programme, MyJoyOnline reports.
IMF assessment of ECG
Otoo also questioned the Ghanaian government’s decision to rely on an assessment of the Electricity Company of Ghana (ECG) conducted by the International Monetary Fund. He called it strange because, in his view, the IMF consistently supports reforms involving broader private-sector participation in state-owned enterprises.
The TUC representative said that trade unions and other organised labour groups oppose proposals for private-sector participation in ECG. According to him, the company’s employees and their representatives have a direct understanding of its operational difficulties.
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Consultations with employees
Otoo criticised the fact that, according to him, ECG employees and the Trades Union Congress were not consulted during the assessment. He believes that discussions of the energy sector’s problems should not be limited to ECG’s operations, but should also cover contractual terms in electricity generation.
According to Otoo, agreements with IPPs have created significant financial obligations for the state. At the same time, the Ghanaian government says reforms are needed to address persistent inefficiency and financial losses in the energy sector.
