The Private Enterprise Foundation (PEF) has called for more local content participation in the disbursement of contracts under the second compact of the American-sponsored Millennium Development Account (MiDA).
?We want more of equity interest in contracts under the second compact rather than just out-sourcing part of contracts to local firms, which will not help us build our capacity,? says the Director Deneral of PEF, Nana Osei-Bonsu.
He said this at a breakfast meeting for the energy industry players organised by the Canadian Chamber of Commerce, Ghana under the topic ?Compact 2 and its Business Opportunities for the Ghanaian Entrepreneur?.
He noted that under the first compact, Ghanaian businesses benefitted from contracts valued at US$110million while Chinese businesses benefitted by US$186million. ?We want to see the situation where Ghanaian businesses benefit more than foreign businesses.?
The MiDA injected $US547million capital into agricultural transformation, transportation, rural development, water provision, electricity expansion and construction and rehabilitations of irrigation dams under the first Compact.
Other projects included classrooms, water, a pack-house for fresh fruits and vegetables, and the famous George Walker Bush Highway, all executed under the first-five-year Compact.
Vice President of the Association of Ghana Industries (AGI), Dr. George Dawson-Amoah, added that it is most crucial for industry to see the extent to which managers of Compact 2 will ensure local content participation in the energy sector to benefit local entrepreneurs.
He was of the view that local content participation is well-structured in the mining sector, and if this could be replicated in the energy sector local entrepreneurs would have a fair share of the business.
The Minister of Trade and Industry, Hannah Tetteh, said there will be opportunities to access contracts for local companies that are prepared and highly competent.
?When it comes to contracts for services, it is really an issue of what is your competence, experience and the ability you have to be able to execute that arrangement.
?If you have your own firm and the competence and experience of your firm is vast, it does not matter if you are competing with larger firms because you will have been able to demonstrate from the information you have that you have as much experience as someone from the large firm,? she added.
She noted that the local companies must present themselves and their ideas properly in order to win contracts ahead of foreign companies.? ?It is still a matter of presentation. If you do not present yourself and ideas properly, how will the decision-makers know what you are made of??
Ms. Tetteh added that there are a number of Ghanaian businesses successfully doing business with the Government, but doing so quietly because they do not want everyone to know that they are really doing well.
Board Chairman of the Millennium Development Account (MiDA), Professor Samuel Sefa-Dedeh, said the objective of Compact 2 is to develop projects and initiatives to address the constraints to supply of reliable and adequate power.
He added that the major outcomes of the second compact will be to increase access and improve delivery of health, education, social services and livelihoods by improving access to electricity.
?Increase business productivity, profitability and private sector investment by reducing outages. Reduce hidden costs of the electricity sector on the economy by effective regulation and improving financial standing of utilities and several others.?
President of the Canadian Chamber of Commerce in Ghana (CCCG), Herbert Morrison, said: ?Ghana is of the firm view that providing efficient and effective power to industry will not only make our economy competitive in the global market place, but in addition create jobs.
?It is the private sector that will drive the investments, manufacture the products, eliminate inefficiencies, and provide the market in which the energy revolution will thrive,? he said.
By Bernard Yaw ASHIADEY
