Monday, June 4, 2018

Meralco still in talks with Ghana for distribution proj


Danessa Rivera (The Philippine Star) - June 4, 2018 - 12:00am

MANILA, Philippines — Manila Electric Co. (Meralco) is continuing negotiations with Millennium Development Authority (MiDA) for the operation and management of Electricity Company of Ghana (ECG).
Meralco president Oscar Reyes said the case versus MiDA has not affected its bid for ECG.
“Our team has been quite busy in negotiations to try to put the   final stages so that the timetable of award and transition can happen potentially by the fourth quarter this year,” Reyes said.
MiDA has been hauled into court by BXC Ghana Ltd., the other bidder for ECG, which was disqualified from the bidding process on grounds of conflict of interest.
BXC Ghana is a Chinese power metering systems and management company registered in Ghana and a subsidiary of Xiaocheng Electronic Technology Stock Co. Ltd.
MiDA is the agency which oversees, manages, and implements the programs under the Millennium Challenge Account set out by the government of Ghana and the Millennium Challenge Corp.
Meralco said it 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,”  Meralco senior vice president Alfredo Panlilio said earlier.
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 is targeting to complete all processes, including Cabinet review and recommendation of the concession agreement and parliamentary ratification of the concession agreement, by September.
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 which provides power to 14 million customers in four Nigerian states.

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