ACEP kicks against ECG’s PSP concession Agreement

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The Africa Center for Energy Policy (ACEP) is worried about some aspects of the Electricity Company of Ghana (ECG)’s Private Sector Participation (PSP) concession agreement which is currently in Parliament for approval.

ACEP in a press release copied to, said Government through its implementing agency, the Millennium Development Authority (MiDA) must first decide on the type of PSP model that better delivers on the objectives of the PSP. The result of a study conducted on the models recommended the Concession option as the appropriate option for Ghana which subsequently got the approval of government.

The release said, MiDA started an international competitive tendering process through Request for Qualification (RFQ) and subsequent Request for Proposals (RFP). The RFQ attracted 34 applicants. The RFQ was to select the best initial offering that satisfied technical experience in electricity distribution, experience in developing countries and financial capacity to invest in the ECG. Out of the thirty-four (34) applicants only six were prequalified.

“Out of the six prequalified only two submitted proposals for the bid. The reasons the other four did not continue the process has remained speculative; some believe the additional requirement for 51% local content proved challenging for some of the consortia whiles others were dissatisfied with the information on the status of the ECG. The challenge is that MiDA has not provided any detailed information on the challenges faced by the process.
These important requirements would have been met by all applicants pursuant to a successful submission of a bid for the ECG PSP. However, the current consortia that has entered into agreement with the government, pending Parliamentary ratification, cannot be said to have satisfied these requirements in the RFQ and RFP,” the release said.

It added that, this was because at the time Meralco submitted its bid the entities in its consortium now (70% owner of the arrangement ) were not part of the arrangement. Meralco was the only company that went through the bidding process without local partners until they won the bid as sole successful applicant.

It said again that, bidders were required to submit an affidavit from each member of their consortia to confirm that all of them had duly paid up their taxes and did not have any criminal records, among others.

Read the full release here
Source: Sammy Adjei ||

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