Electricity Company of Ghana
Electricity Company of Ghana

The companies consist of 24 foreign countries, as well as 18 Ghanaian firms.

Electricity Company of Ghana
Electricity Company of Ghana

Eighteen of the companies are in¬digenous Ghanaian owned while the remaining 24 companies are from 14 different foreign countries.

ECG is expected to be handed over to a Concessionaire in January 2017.

The United States is supporting the nation’s power sector with an investment of US$497 million to aid its transformation – to assure the people and businesses of reliable electricity supply.

Mr. Robert Porter Jackson, the US Ambassador, said this was coming under the “President Obama’s Power Africa Initiative”, designed to boost electrical power supply across the continent.

He noted that inadequate and erratic energy flow was unhelpful to economic growth and said it was for this reason that every effort must be made to radically improve the energy situation.

The support which is part of Millennium Challenge Account Compact II, seeks to introduce reforms and intensify efforts to ensure consistent electricity distribution to consumers.
This support has pushed the government to concede some aspect of the Electricity Company of Ghana’s (ECG) activities to ensure division of labour that will automatically bring efficiency in the electricity distribution in the country.

Companies interested in the con¬cession are from United States of America (USA), South Africa, United Kingdom (UK), France, Lebanon, India, Nigeria, Philippines, Turkey, Canada, United Arab Emirates (UAE), Ireland, Israel and Thailand.

The Millennium Development Au¬thority (MiDA) posted the updated list of companies that have expressed in¬terest in the ECG concession on its website on Wednesday March 2, 2016.

The compact two of the Millen¬nium Challenge Account between the Government of Ghana and the Millennium Challenge Corporation 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.

In helping to address this problem, the MCA recommended that EGC be handed over to a Concessionaire for a specific period of time.

The development would also help to eliminate government’s interference in the operations of the ECG.

The list of 18 Ghanaian companies include: Power Meter Technics (Pty) Ltd &Pricoil Ghana Limited, China Railway No.5, Engineering Group Co. Ltd, Wilkins Engineering. Limited, ER- STOVS COMPANY LIMITED, TG Energy Solution Ghana Limited, En¬clave Power Company, BXC GHANA LIMITED, HECDIG Limited, MBH

POWER AND GAS LTD, MC Jones Energy, Fallow Ghana Ltd, Wellfind Limited, Reroy Power Limited, IRIS, Infrared Imaging Solutions, Belstar Capital Ltd, in collaboration with CEC Africa Investments Ltd, The Quantum Group Ltd, Rabest Company Limited and Amandi/STL.

Six companies from the United States of America have also expressed interest. They are;Thelios Power/Orgone Development LLC, APSM, Pike Cor¬poration & UC Synergetic Informa¬tion-Thinking Engineering Solutions, CMF Global. Inc, New Generation Power and Latitude Capital Manage¬ment L.P.

However, some analysts and civil society groups have expressed concern that because the USA is providing funding for restructuring ECG, companies from that country stand a better chance of winning the concession bid.

However, MiDA officials have dis¬counted this assertion, adding that only the best company can win the concession.

Also, three companies from South Africa; namely, Total Utilities Man¬agement Services, Mat Tecknologies Consultancy Limited/Siri Engineering (PTY) Ltd and Pricoil Ghana Limited, with office in Ghana, have also ex¬pressed interest in the ECG conces¬sion.

Actis GP LLP-United Kingdom and CDC Group pic from the United Kingdom have also shown interest.

Interest was received from-two companies from France EDF International Networks and Eranove Group.

Butec Utility Services-Lebanon and Matelec S.A.L-Lebanon also ap¬plied for the concession.

Expression of interest was received from 10 other countries. They include; TataPower Company Limited Manila Electric Company/ MERI ALCO, Philippines; AFRASIA, Enerji MÜh.ve Dan. Tic. A.S, Manitoba Hydro Intei Canada; ENG1E Limited, Uri Emirates; ESB International,

NIP Global Ltd, Israel; African Infrastructure Investment Managers (AIIM), Nigeria; and Metre Electricity Authority, (MEA) land.

O&M Solutions expressed interest but did not provide their address.

According to MiDA, it reserves right to change, amend or modify the list at any time and without prior notice.

Analysts say if ECG is able to reduce its annual cumulative losses by half, it would be making $150 million every year.

Any company that succeeds in winning the concession to operate ECG from January 2017 will be expected to invest not less than $200 million every year.

It is on record that the power sector requires about $200 million investment every year for a number of years —a responsibility the government alone cannot shoulder, hence the need for the concessionaire.

The money will be used to replace obsolete equipment in order to maintain service quality.

In addition, between $8 billion and $12 billion would be required by the country – for new power generating plants in the next 10 years to ensure reliable power.

The major project under the Ghana Power Compact is the Electricity Company of Ghana (ECG) Financial and Operational Turnaround Project, which is designed to transform ECG into an efficient and financially strong institution through private sector par¬ticipation (PSP).

About $300 million of the MCC grant is being invested in ECG, and the Government of Ghana is commit¬ting at least S37.4 million of its own money.

The project seeks to bring about PSP in investments into ECG, as well as the management and operation of the power provider through a conces¬sion arrangement.

Source: Adnan Adams Mohammed


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