The number of companies that have expressed interested in the private sector participation (PSP) in Electricity Company of Ghana (ECG) has jumped from 33 as of the end of 2015 to 42 companies at March 2, 2016.
The expression of interest comes from 14 foreign countries, as well as Ghana.
Eighteen of the companies are indigenous 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.
Companies interested in the concession 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 Authority (MiDA) posted the updated list of companies that have expressed interest in the ECG concession on its website on Wednesday March 2, 2016.
The compact two of the Millennium 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.
List of 18 Ghanaian companies
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, Enclave 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.
USA (4 companies)
Six companies from the United States of America, the country providing close to $500 million to restructure ECG, have also expressed interest.
They are Thelios Power/Orgone Development LLC, APSM, Pike Corporation & UC Synergetic Information-Thinking Engineering Solutions, CMF Global. Inc, New Generation Power and Latitude Capital Management L.P.
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 discounted this assertion, adding that only the best company can win the concession.
South Africa (3 companies)
Three companies from South Africa; namely, Total Utilities Management Services, Mat Tecknologies Consultancy Limited/Siri Engineering (PTY) Ltd and Pricoil Ghana Limited, with office in Ghana, have also expressed interest in the ECG concession.
United Kingdom (2 companies)
Actis GP LLP-United Kingdom and CDC Group pic from the United Kingdom have also shown interest.
France (2 companies)
Interest was received from-two companies from France EDF International Networks and Eranove Group.
Lebanon (2 companies)
Butec Utility Services-Lebanon and Matelec S.A.L-Lebanon also applied for the concession.
Interest from 10 other countries
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 list at any time and without prior notice.
Analysts say if ECG is able to reduce its annual cumulative loses which stand at 35%, by half, it would be making $150 million every year.
Any company that succeeds in curing the concession to operate E from January 2017 will be expected 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 could not 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 participation (PSP).
About $300 million of the MCC grant is being invested in ECG, and the Government of Ghana is committing 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 concession arrangement.