The union has accused the World Bank of being “disingenuous” in its description of the proposed arrangement and warned that it would resist what it considers an attempt to privatise Ghana’s electricity distribution sector.
In a statement issued in September 2026, the TUC took particular issue with comments by the World Bank Country Director, Dr Adrian Alter, on Channel One Television on August 24, in which he described the proposed PSP as involving “only revenue collection.”
The TUC said that characterisation did not accurately reflect the model proposed by the Transaction Advisor appointed at the instance of the World Bank and the International Monetary Fund (IMF).
“Contrary to the Bank’s explanation, the Transaction Advisor appointed at the instance of the Bank and its sister institution, the IMF, has proposed a model in which private operators will assume responsibility for electricity distribution from the Bulk Supply Points to the final customer,” the union said.
According to the TUC, the proposed arrangement would effectively transfer several operational functions currently performed by ECG and NEDCo to private operators.
Under the model, ECG and NEDCo would retain ownership of their distribution assets, while private operators would lease and operate the networks.
The private operators would be responsible for functions including billing, revenue collection, customer management, network maintenance, loss reduction and other technical and commercial activities.
“The World Bank is aware of this model. It is shocking for the Bank to say otherwise. And it is even more disingenuous for the Bank to claim that ECG is not going to be privatised,” the TUC stated.
The union said its opposition was informed partly by what it described as the World Bank’s historical approach to privatisation, arguing that the institution had previously promoted the sale or restructuring of state-owned enterprises as part of its policy prescriptions.
The TUC also cited electricity access data from selected African countries to challenge the argument that greater private sector involvement in electricity distribution necessarily leads to improved access.
It said Egypt, Tunisia, Algeria, Ghana, South Africa, Kenya and Rwanda had higher rural electricity access rates than Nigeria and Uganda, where private companies had taken over electricity distribution.
The union argued that the figures raised questions about whether private sector participation automatically delivers better electricity access, particularly in rural communities.
The TUC also criticised what it described as the World Bank’s focus on distribution losses, while calling for greater scrutiny of the Independent Power Producer (IPP) model.
According to the union, the model promoted by the World Bank had contributed to Ghana’s high electricity generation costs, including significant foreign-exchange exposure.
“The Bank will have us believe that the IPP model of procuring generation is the only game in town and that Ghana cannot do without it. This is a lie. There are better alternatives,” the TUC stated.
The union also referred to the controversy surrounding the previous ASKA Energy Power Purchase Agreement and challenged the World Bank to comment on the matter.
The TUC maintained that decisions concerning Ghana’s strategic energy assets should remain within the authority of the Ghanaian government.
“We did not vote for the World Bank to run our country and, for that matter, our energy distribution sector,” the union stated.
It argued that Ghana’s sovereignty to manage its strategic assets should not be outsourced to an external institution or transaction advisor.
The union further recalled Ghana’s experience with privatisation under the Structural Adjustment Programme, claiming that more than 100 state-owned enterprises were privatised under World Bank-supported reforms.
It said the process resulted in significant job losses and other negative consequences for workers and communities.
The TUC therefore reaffirmed its opposition to private sector participation in ECG and NEDCo, arguing that it considers PSP and privatisation to be effectively the same.
“We regard PSP and Privatisation as one and the same and that the TUC and its affiliates are intensely opposed to the privatisation of Ghana’s electricity distribution sector,” it stated.
The union said it would use all legal means available to prevent the proposed arrangement from proceeding.
The World Bank had not publicly responded to the TUC’s latest statement at the time of publication, while the government had also not commented on the union’s position.
Source: Wesleyannews.com
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