The Trades Union Congress (TUC)-Ghana has rejected the World Bank’s push for private sector participation (PSP) in the operations of the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo).
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 exception to comments by the World Bank Country Director, Dr Adrian Alter, who, in an interview with Channel One Television on August 24, described the proposed PSP as involving “only revenue collection.”
The union, however, said that description does not accurately reflect the model proposed by the Transaction Advisor appointed at the instance of the World Bank and the International Monetary Fund (IMF).
TUC: Private Operators Would Control Distribution
According to the TUC, the proposed model would give private operators responsibility for electricity distribution from Bulk Supply Points to final consumers.
“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 stated.
Under the arrangement, ECG and NEDCo would retain ownership of their distribution assets, while private operators would lease and operate the networks.
Their responsibilities would reportedly include billing, revenue collection, customer management, network maintenance, loss reduction, and other technical and commercial functions.
The TUC said the proposed arrangement would therefore transfer several core functions currently performed by ECG and NEDCo to private operators.
“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 union said.
Union Questions Benefits of Private Participation
The TUC said its opposition is partly informed by what it described as the World Bank’s historical approach to privatisation.
It argued that the institution had previously supported the sale and restructuring of state-owned enterprises under reforms driven by what the union described as an ideological preference for private ownership.
The union also cited electricity access data from selected African countries to challenge the argument that greater private sector involvement necessarily leads to improved electricity distribution.
According to the TUC, Egypt, Tunisia, Algeria, Ghana, South Africa, Kenya and Rwanda record higher rural electricity access rates than Nigeria and Uganda, where private companies have taken over electricity distribution.
The union said the comparison raises questions about whether private sector participation automatically delivers better electricity access, particularly in rural communities.
TUC Challenges IPP Model
The union also criticised what it described as the World Bank’s emphasis on electricity distribution losses while calling for greater scrutiny of Ghana’s Independent Power Producer (IPP) model.
According to the TUC, the generation model promoted by the World Bank has contributed to Ghana’s high electricity generation costs, including significant exposure to foreign-exchange risks.
“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 further referred to the controversy surrounding the previous ASKA Energy Power Purchase Agreement and challenged the World Bank to comment on the matter.
‘We Did Not Vote for World Bank to Run Ghana’
The TUC maintained that decisions concerning Ghana’s strategic energy assets must remain under 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 over its strategic assets should not be outsourced to an external institution or transaction advisor.
The union also recalled Ghana’s experience with privatisation under the Structural Adjustment Programme, saying more than 100 state-owned enterprises were privatised under World Bank-supported reforms.
According to the TUC, that process resulted in significant job losses and other negative consequences for workers and communities.
TUC Vows to Resist Privatisation
The TUC reaffirmed its opposition to private sector participation in ECG and NEDCo, insisting 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 is yet to publicly respond to the TUC’s latest statement, while the government has also not commented on the union’s position.
