Meralco investing in Ghana

MANILA, Philippines — Manila Electric Co. (Meralco) is bringing its power distribution business to Ghana after edging another bidder for a 20 to 30 year concession.

The Millennium Development Authority (MiDA) has chosen Meralco as the preferred bidder for the management and operation of, and investment in the electricity distribution business of the Electricity Company of Ghana (ECG).

MiDA is the agency that oversees, manages, and implements the programs under the Millennium Challenge Account set out by the government of Ghana and the Millennium Challenge Corp.

The agency said there were two bidders namely, Meralco and BXC Ghana for the concession.

Meralco senior vice president Alfredo Panlilio said in a text message the company would pursue negotiations for the investment in ECG.

“The bid is for equity ownership and management of the concession company to take over the Electricity Company of Ghana, which supplies 80 percent of the population of Ghana through three million accounts,” Panlilio said.

The ECG Private Sector Participation (ECG PSP) is one of five activities under the ECG Financial and Operational Turnaround Project of the Ghana Power Compact Program.

Under the ECG PSP, MiDA is auctioning off a 20 to 30 year concession to provide additional investment urgently required to improve the electric infrastructure, innovation and technology to enhance operational efficiency and efficient capital expenditure to improve service delivery.

At the end of the concession, all assets will be transferred back to ECG.

MiDA said negotiations would soon commence to finalize all the agreements related to the implementation of the ECG PSP transaction.

The agency is set to complete all processes, including cabinet review and recommendation of the concession agreement and parliamentary ratification of the concession agreement by September.

“MiDA wishes to assure Ghanaians that it will continue to adhere to, and uphold high standards of integrity and transparency throughout the process,” it said.

This is not Meralco’s first overseas venture. In November 2013, Meralco’s partner, Lagos-based Integrated Energy Distribution and Marketing Ltd. (IEDM), took over Ibadan Electricity and the Philippine distribution utility was tapped as technical partner.

Last year, Meralco was invited by Port Harcourt Electricity Distribution Co. to provide technical partnership and service. Port Harcourt is a former state-owned distribution utility that provides power to 14 million customers in four Nigerian states.