26 companies fight over ECG as takeover bid heats up

Twenty six companies have expressed interest in taking over the management and operations of the Electricity Company of Ghana (ECG) as the take over bid of the company heats up.

The companies – both local and foreign – are hoping to operate and invest in the electricity distributor for the next 20 years under the Millennium Challenge Corporation Compact signed with government of the United States of America in August 2014.

The Compact provides Ghana with a grant of $498,200,000 to improve the power sector in exchange for ECG assets.

Government through the Power Ministry and the ECG announced plans to privitise the ECG in September.

Government said privatising the ECG will make the company more efficient by improving its operations and reduce commercial and technical losses.

Ing Owura Sarfo
Chief Executive Officer of the Millennium Development Authority (MiDA), Ing. Owura Sarfo told Joy News at an Editor’s forum in Accra, that ECG’s suitors include ten local companies and fourteen foreign ones.

Two others have both foreign and local owners.
There have been reports suggesting the state electricity distributor is being sold outright, but the MiDA CEO says that is not the case.

He explained that the company will be given out on a concession basis with the concessionaire making payments to government for the period it will be operating ECG.

Though he will not disclose the potential concessionaires, Ing. Owura Sarfo says those who have come forward so far include some very major players.

“I will not mention names at this time, but we have received expression of interest from major, major companies who are interested or operating transactions of the nature that we expect to have,” he said.

The MiDA CEO said the interest shown by local companies is exciting but advised that they partner with other companies to make their bid even stronger.

“As you know, the ECG concession arrangement has a requirement that there should be local participation both at the ownership and operational level, and so we’re very happy that local companies are also participating.

“We are also hoping that if any of them would also want to collaborate with other companies whether local or foreign to enhance their strength to make them even stronger to be able to compete,” Ing. Owura Sarfo stated.

Companies who show interest in ECG at this stage will be eligible to receive further information including the qualification criteria, the draft transaction agreements, the bid process, the bid evaluation criteria, and the instructions for bidders to submit their proposals.

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