US$54,191,650 NEDCo fund reallocated for construction of BSP at Kasoa

The USS$54,191,650Compact Fund meant for the Northern Electricity Company (NEDCo) ’s Financial and Operational Turnaround project, has been reallocated for the construction of a Bulk Supply Point (BSP) at Kasoa in the Central Region, the Ministry of Energy has revealed.

This followed rejection of the Management Contract by the staff mainly on the grounds that it involved the vesting of corporate-wide operational control in the Management Contract as well as other related issues contained in the staff groups’ position on the Project.

A statement signed and issued by Nana Kofi Oppong-Damoah, Head of Communication and Public Affairs Unit, in Accra yesterday, said NEDCo would have to seek new funds either by borrowing or other financial arrangements to be able to implement projects intended to have been undertaken with the Compact Funds.

Following the opposition from staff groups from NEDCo against the Management Contract as a form of Private Sector Participation in the company, it said several meetings were held between the Ministry of Energy, Board members and Management of NEDCo as well as senior staff members of NEDCo, to address issues and secure funds for infrastructure projects in NEDCo’s area of operation.

The statement noted that government, just like in the case of the renegotiation of the terms of the Private Sector Participation (PSP) in ECG, assured staff of NEDCo that here would be no job losses as a result of the implementation of the project and no replacement of the existing Management team.

Additionally, the terms of the Management Contract was reviewed from five years to two while NEDCo would participate actively in the crafting of the Management Contract to ensure that it interests were catered for in the implementation, the statement explained.

The statement said that, issues or challenges that staff may have with the project should be channelled to the Transaction Advisor and if there was a stalemate on any matter, same should be brought to the attention of government for immediate redress.

Despite all these efforts made by government to secure the Compact Funds for NEDCo, the statement said, the staff rejected the Management Contract.

It said some staff wearing red arm and head bands went to the meeting grounds with placards indicating their support for the stance adopted by staff leaders when NEDCo’s management was communicating Government’s assurance to NEDCo in a meeting.

The decision to reallocate the Compact Funds was taken during a review meeting to assess the status of implementation of projects and to re-strategise towards effective utilisation of Compact Funds on the projects, the statement added.

By Times Reporter


Show More
Back to top button