Court dismisses injunction suit on ECG privitization

Accra High Court presided over by Justice Efua Novisi Aryene has dismissed an interlocutory injunction application filed by a member of the main opposition New Patriotic Party (NPP), Mr Saaka Salia, by which he sought to stop the government from ceding part of the operations and management of the Electricity Company of Ghana to a private firm in a concession deal.

The court on Tuesday, 15 November that Mr Salia had no direct interest in the matter, adding that he, as a private individual, will suffer the same consequences as every other citizen, should the deal go through. The court also said Mr Salia lacked the capacity to fight the process in court but was merely abusing the legal process to stall the deal. A cost of GHS5,000 was awarded against him.

The governments of Ghana and the United States signed an agreement for the release of the $498,200,000 grant for the improvement of power distribution in the West African country under the second compact of the Millennium Challenge Account.

Under the four-year compact deal, Ghana must cede ECG’s management to a private company.

The, compact is the largest U.S. government transaction to date, under Power Africa, and is expected to serve as an anchor for increased American engagement in Ghana.

The Ghana Power Compact programme consists of six major projects each, with a set of activities aimed at contributing to support the transformation of Ghana’s power sector. The six are ECG Financial and Operational Turnaround (EFOT), Northern Electricity Distribution Company (NEDCo) Financial Turnaround Project, Access Project, Regulatory Strengthening and Capacity Building Project, Energy Efficiency and Demand Side Management Project, and the Power Generation and Improvement Project.