A total of thirty-three private companies have expressed interest in the Electricity Company of Ghana (ECG) under the Private Sector Participation (PSP), the Millennium Development Authority (MiDA) has announced.
Government has decided to give the ECG to a private entity on concession.
Under the move, government would enter into a contract with the private sector partner who would have exclusive rights to operate, maintain and invest in the ECG for a stated number of years beginning January 2017.
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.
The Finder newspaper reported on Monday January 25 that the any company which succeeds in securing the concession to operate the ECG from January 2017 would be expected to invest not less than $200million every year.
Out of the 33 companies, 13 of them are Ghanaian based while the remaining 20 companies are from different foreign countries.
Download the list of 33 companies from here
Below is the list of 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)
6. TG Energy Solution Ghana Limited (Ghana)
7. BXC GHANA LIMITED (Ghana)
8. HECDIG Limited (Ghana)
9. MBH POWER AND GAS LTD (Ghana)
10. MC Jones Energy (Ghana)
11. Pallow Ghana Ltd (Ghana)
12. Wellfind Limied (Ghana)
13. Reroy Power Limited (Ghana)
14. Total Utilities Management Services (South Africa)
15. African Infrastructure Investment Managers (South Africa)
16. Butec Utility Services (Lebanon)
17. The Tata Power Company Limited (India)
18. Manila Electric Company/ MERALCO (Philipines )
19. O&M Solutions (Country not known)
20. Thelios Power/ Orgone Development LLC (USA)
21. Pike Corporation (USA)
22. New Generation Power International (USA)
23. AFRASIA Mad. Enerji MÃ¼h. ve Dan. Tic. A.Åž. (Turkey)
24. EDF International Networks (France)
25. Manitoba Hydro International (Manitoba)
26. Eranove Group (France)
27. ENGIE Limited (UAE)
28. Actis GP LLP (United Kingdom)
29. CDC Group plc (United Kingdom)
30. ESB International (Ireland)
31. NIP Global Ltd (Israel)
32. CMF Global
33. Metropolitan Electricity Insurance (Thailand)
ECG will be for Ghana
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.
MiDA has also stated that there was currently no retrenchment plan in place for ECG's 6,300 workforce, adding that 'as the company grows and prospers, it is likely that additional job openings would be created both within and without the ECG in the distribution sector'.
It further stated that a technically and financially sound ECG was key to the country's macroeconomic development, contending that the Millennium Challenge Corporation's grant of US$498.2 million would give Ghana the opportunity to turnaround ECG and position it as a growing concern.