Ghana Electricity Privatisation of ECG in the offing; 33 companies bid

This arrangement is under the Private Sector Participation under the Millennium Development Authority.

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Reports reaching Pulse Business reveal that a total of 33 private business have tended in a bid for a Public- Private Partnership deal with the Electricity Company of Ghana, according to the Millennium Development Authority.

This arrangement is under the Private Sector Participation under the Millennium Development Authority.

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Under the deal, government is supposed to go for one of several options of a Public- Private Partnership that will help the ECG collects its debts more efficiently. And government has opted for a concessional partnership which will see a partner that will have exclusive rights to operate, maintain and invest in the ECG for a number years.

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The compact two of the Millennium Challenge Account (MCA) between Government of Ghana and the Millennium Challenge Corporation (MCC) of the United States of America is a Power Compact aimed at transforming ECG in terms of technology and efficiency in power distribution to become a stronger company able to meet the current and future needs of Ghanaian families and businesses.

MiDA on Thursday, January 21, 2016 posted the list of companies that have expressed interest in the ECG concession on its website and explained that the list was obtained as of the end of 2015.

The expression of interest is still open, and it is possible that by the time it is closed the number of companies interested could rise further.

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The Finder newspaper reported on Monday January 25 that any company which succeeds in securing the concession to operate the ECG from January 2017 would be expected to invest not less than $200 million every year.

Out of the 33 companies posted on the MiDA website, 13 of them are Ghanaian based while the remaining 20 companies are from different foreign countries.

 

Below is the list of some of the companies that have expressed interest in the ECG

1. Power Meter Technics (Pty) Ltd & Pricoil Ghana Limited (Ghana)

2. Africa Power Systems Management Inc (APSM) (Ghana)

3. China Railway No.5 Engineering Group Co. Ltd (Ghana)

4. Wilkins Engineering Limited (Ghana)

5. ERSTOVS COMPANY LIMITED (Ghana)

See full list of the private companies:  33 private companies bid for ECG job

There have been concerns from workers of ECG and the public with regards to ownership of the company when a private partner comes on board but MiDA has explained that “Ownership of ECG will remain with the government of Ghana over the concession period, after which the government will assume total control of its operations and maintenance, MiDA further explained.

It said under the concession arrangement, the ECG workforce would be transferred to the new company which will have mostly Ghanaian managers and some Ghanaian board members, as is the case with CIE in Cote d‘Ivoire and Umeme in Uganda where utilities are highly efficient.

The MiDA said a third of the power that ECG bought went to waste through network problems, theft and operational challenges, for which reason no private entity would be motivated to produce power for the ECG to sell.

“Over the last 30 years, the government has created conditions for investors to generate power in Ghana and many such private sector entities have indicated their interest but continue to flag the difficulties with the current distribution system as the reasons why they are not investing,” MiDA claimed.

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