The Manila Electric Co. (Meralco) moves an inch closer to operate and manage the Electricity Company of Ghana Ltd. (ECG) following official announcement by Ghana’s Millennium Development Authority (MiDA) that the Philippines’s largest power distribution firm is the preferred bidder.
“Following an international competitive procurement process, the evaluation of the proposals received for the Management of, Operation of, and Investment in the Electricity Distribution Business of the Electricity Company of Ghana [ECG] has been completed. The Meralco consortium was determined to have the highest combined technical and financial score and has, therefore, been designated as the Preferred Bidder,” MiDA said.
Meralco bested BXC Company Ghana Ltd. Negotiations are expected to commence soon in a bid to finalize all the agreements related to the implementation of the ECG PSP (Private Sector Participation) Transaction, MiDA added.
“We will undergo negotiation process,” said Meralco Legal Head William Pamintuan when sought for comment.
“MiDA wishes to assure Ghanaians that it will continue to adhere to, and uphold high standards of integrity and transparency throughout the process,” MiDA said.
MiDA expects to conclude negotiations with Meralco on or before September 6. Likewise, Cabinet Review and Recommendation of the Concession Agreement and Parliamentary Ratification of the Concession Agreement would be finished by then.
MiDA opened both proposals in the presence of the representatives of the bidders on March 26. The decision on the preferred bidder took place on April 19.
Both participated in the bid for equity ownership and management of the concession company to take over ECG, which supplies 80 percent of the population of Ghana through 3 million accounts.
The auction is meant to address the root causes of unavailable and unreliable power supply in the west coast of Africa. The lack of power supply continues to plague the country’s power sector and slows economic growth.