Thirty-three companies from 13 foreign countries, as well as Ghana, had expressed interest in the Private Sector Participation (PSP) in the Electricity Company of Ghana (ECG) as of the end of last year.
Ten of the companies are indigenous Ghanaian-owned while the remaining 23 companies are from 13 different foreign countries.
Companies interested in the concession are from United States of America (USA), South Africa, United Kingdom (UK), France, Lebanon, India, Philippines, Turkey, Canada, United Arab Emirate (UAE), Ireland, Israel and Thailand.
Two other companies did not provide their addresses; therefore their countries are not known.
The Millennium Development Authority (MiDA) posted the updated list of companies that have expressed interest in the ECG concession on its website on Thursday, January 21, 2016.
The expression on interest is still open, and it is possible that by the time it is closed the number of companies interested could rise further.
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.
List of 10 Ghanaian companies
These are BXC Ghana Limited, HECDIG Limited, MBH Power and Gas Limited, MC Jones Energy, Pallow Ghana Limited, Wellfind Limited, Reroy Power Limited, ERSTOVS Company Limited, China Railway No.5 Engineering Group Co. Ltd, and Wilkins Engineering Limited.
USA (4 companies)
Four 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, CMF Global, Pike Corporation and New Generation Power International.
Some analysts and civil society groups have expressed concern that because 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 of company can win the concession.
South Africa (3 companies)
Three companies from South Africa; namely, African Infrastructure Investment Managers, Total Utilities Management Services, Power Meter Technics (Pty) Ltd & 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 plc 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.
Interest from 9 other countries
Other companies that expressed interest are Butec Utility Services – Lebanon; The Tata Power Company Limited – India; Manila Electric Company/MERALCO –Philippines; AFRASIA Mad. Enerji Müh. ve Dan. Tic. A.Ş. – Turkey; Manitoba Hydro International – Canada; ENGIE Limited - United Arab Emirates; Africa Power Systems Management Inc (APSM) – Ireland; NIP Global Limited – Israel; and Metropolitan Electricity Insurance – Thailand.
Two other companies, O&M Solutions and TG Energy Solution Ghana Limited expressed interest but did not provide their addresses.
According to MiDA, it reserves the right to change, amend or modify this list at any time and without prior notice.
Analysts say if ECG is able to reduce its annual cumulative losses, which stand at 35%, by half, it would be making $150 million every year.
Any company that succeeds in securing the concession to operate the Electricity Company of Ghana (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 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 $37.4 million of its own money.
The project seeks to bring about PSP in investments into, as well as the management and operation of the ECG through a concession arrangement.
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