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Business News of Tuesday, 23 May 2017


ECG concession: bidders reduced to 6; MIDA sets eyes on financially viable bidder

MIDA sets eyes on financially viable bidder  for ECG concession MIDA sets eyes on financially viable bidder for ECG concession

The Millennium Development Authority (MIDA) has assured Ghanaians that it will select a financially viable concessionaire for the Electricity Company of Ghana (ECG). This was made known at the first bidders’ conference held in Accra to take bidders through the processes and requirements involved in the concession of the ECG.

The ECG has been riddled with lot of challenges including financial and managerial, and the concession programme forms part of measures to review the company. Per the agreement, government will have a 51 percent stake, while the concessionaire takes 49 percent.

About 140 companies tendered in their bids to manage ECG out of which 11 were shortlisted. Meanwhile the government has reduced the number further down to 6 whose documents are being considered that would lead to the selection of one bidder.

Speaking to the media at the conference, chief executive officer of MIDA engineer Owura Sarfo says the authority will do due diligence in selecting a concessionaire that has the financial muscle to turn the fortunes of the power distributor around.

He said “Each of them will need to demonstrate by their documents that they have the capacity, and that will be evaluated by the evaluation committee. We know the si

tuation at stake and we will make sure that whoever is selected can perform”. “The right person with the sound financial standing will be selected”, he added. He added that the contract will be subjected to yearly review for effective performance.

“We have a number of performance indicators that the concessionaire will have to meet. At the end of every year the contract will be reviewed as well as the end of every year 5 year”, he stated.

Mr. Owura Sarfo said, “There will be sanctions if they do not perform according to what has been agreed”.