Citi Business News can confirm that the Bidders’ Conference that is expected to assemble all the six concessionaires for the privatisation of the Electricity Company of Ghana will take place in two to three weeks time.
The Conference which was earlier scheduled to take place in December 2016 was postponed after the Trades Union Congress petitioned the erstwhile John Mahama administration to cancel it.
Officials at the Millennium Development Authority told Citi Business News that it is imperative for government to hold the bidders’ conference before the month of May ends, or face severe penalties that may lead to Ghana losing a substantial portion of the 498 million dollars meant to be the initial investment into the ECG.
According to MiDA, the conference will also provide an opportunity to the concessionaires to deliberate on government’s 51 percent stake of ECG. Already, the Nana Akufo- Addo government has assured that no staff of ECG will be laid off.
Details of Compact II
Under the Power Compact, six projects will be implemented to address the root causes of the unavailability and unreliability of power in Ghana
The project includes ECG Financial and Operational Turnaround Project, NEDCo Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, and Access Project.
The rest are Power Generation Sector Improvement Project and Energy Efficiency, and Demand Side Management Project.
The Government of Ghana signed the Ghana Power Compact with the Millennium Challenge Corporation (MCC), an independent United States government agency, on the sidelines of the US-Africa Leaders’ Summit in Washington on August 5, 2014.
Ghana to get over 498m dollars
Ghana signed the Power Compact with the United States of America acting through the Millennium Challenge Corporation (MCC), an independent United States government agency, on the sidelines of the US-Africa Leaders’ Summit in Washington DC on August 5, 2014.
The Ghana Power Compact would provide Ghana with a grant sum 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, unlock the country’s economic potential, create jobs, and reduce poverty.
About US$350 million of the grant is being invested in ECG to make the country’s power distributor operationally and financially more efficient.
The Compact is being implemented by the Government of Ghana through the Millennium Development Authority (MiDA).