[ 2017-05-24 ]

Chief Executive Officer of MiDA, Ing Owura Sarfo

6 concessionaires to start inspection of ECG assets - Ing. Owura
The Millennium Development Authority(MiDA) has
told Citi Business News the authority has engaged
the six concessionaires participating in the ECG
Private Sector agreement.

The six concessionaires who are currently in the
country participated in a bidders conference held
in Accra yesterday to discuss the 51 percent stake
to be controlled by Ghanaian investors in the ECG
PSP project under the Power Compact Two, with the
Millennium Challenge Corporation.

It will be recalled that the conference was
scheduled for October last year but was suspended
after the Public Utilities Workers Union(PUWU),
led by the Trades Union Congress petitioned the
Mahama government against it.

Speaking to Citi Business News after the first
Bidders Conference, the Chief Executive Officer of
MiDA, Ingineer Owura Safo stated that the
concessionaires will soon undertake an inspection
of ECG installations.

“We are going to have a one-on-one meeting with
them because each of them will have their own
issues. We need to talk to them to explain the
process for them. The process is very expensive
for them. We need to clarify the process for them.
After the process is completed, one concessionaire
will be selected,” he said.

Ing. Owura stated that the process will include an
inspection of the ECG plants and installations.

Dispelling the misconception that the PSP is a
privatization, Ing. Owura stated that the ECG will
not be sold.

“The ECG Financial and Operational Turnaround
Project aims to strengthen the governance and
management of ECG by bringing in an acceptable
concessionaire to make investments designed to
reduce technical, commercial, and collection
losses and improve service quality,” he
stressed.

“MiDA continues to work together with all
stakeholders on this journey of identifying the
best qualified private sector partner for ECG.
This partnership will transform the ECG in terms
of technology in power distribution,” he said.

“Let us seize the opportunity together to
improve the power situation in our dear
country,” he added.

The Bidders’ Conference facilitated interaction
between the shortlisted Applicants for the ECG
Concession and potential local and international
investors.

About the ECG PSP Transaction

The Government of Ghana signed the Ghana Power
Compact with the Millennium Challenge Corporation
(MCC), an independent United States government
foreign aid agency, on August 5, 2014.

The Ghana Power Compact provides Ghana a grant of
Four Hundred and Ninety Eight Million, Two Hundred
Thousand United States Dollars (US$498,200,000) to
improve the performance of Ghana’s power sector
to unlock the country’s economic potential,
create jobs, and reduce poverty.

The Government of Ghana is committing at least
US$37.4 million of its own money.

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 participation (PSP). About US$351 million
of the MCC grant is being invested in ECG.

The project seeks to bring about private sector
participation in investments into, as well as the
management and operation of, the ECG through a
concession arrangement.

Under the concession a private partner will invest
in ECG and improve its operations to reduce
commercial and technical losses, reduce the
frequency and duration of outages, introduce new
equipment and technology, and reduce the
vulnerability of the distribution system to theft
and meter manipulation.

The Compact is being implemented by the Government
of Ghana through the Millennium Development
Authority (MiDA).

About MiDA

MiDA is a Ghana government agency created in 2006
by an Act of Parliament. The Authority has been
mandated by the Government of Ghana to implement
the Ghana Power Compact, which seeks to address
the root causes of the current problem of
unreliable power supply in the country.

Source - citibsinessnews.com

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