[ad_1]
Parliament approved the concession proposal of the Ghana Electricity Company (ECG) by the Melraco Consortium
after the Cabinet approved the concession after reviewing the documents covering the takeover [19659003]. Martin Esson Benjamin said the processes involved in ECG privatization.
As part of this compact, six projects will be implemented to address the root causes of the unavailability and unreliability of power in Ghana. READ MORE: The reduction in electricity tariffs will begin after the second purchase in April
Others include the project to improve the energy production sector and the l & rsquo; # 39; energy. Efficiency and Demand Management Project
Presentation of the Report of the Joint Committee to Parliament on Tuesday, July 24, 2018, Chairman of the Committee on Mines and Energy, Hon. Emmanuel K. Gyamfi told members that the Committee was hopeful that private sector participation in the ECG through a concession would help reverse the utility's situation and restore financial viability. and operational of the company.
The agreement, he noted, is beneficial to the government in part because the concessionaire is responsible for all major new investments that will help minimize the impacts of these investments on the national budget.
Local content
MiDA, previously confirmed to have received a letter from one of the shortlisted consortiums for the ECG grant.
"MiDA confirms to have received such a letter on the bidder's concern regarding the Government of Ghana's policy of having 51% of Ghanaian participation in the concession structure," a MiDA press release.
The French electricity conglomerate EDF, the French transnational Veolia and their local partner CH Group – who submitted a joint bid for the ECG concession – rejected the government's policy of allocating 51% of the concession to Ghanaian companies.
In a letter dated February 12, 2018, signed by Kevin Dadzie of CH Group, EDF and Veolia protest against the new direction of the local content policy under the amended RFP to encourage businesses and Ghanaian entrepreneurs to be majority shareholders in the concession contract
. (MiDA) Enson Benjamin, and copied to the chairman of the board of directors Prof. Yaa Ntiamoa-Baidu, EDF and Veolia said: "We are writing on behalf of the consortium including CH Group Ltd, EDF and Veolia Africa, to express our significant concerns regarding the Newco [ECG] structuring requirements set out in the amended RFP, dated 29 November 2017 (the "Amended RFP")
ALSO READ: Tariff Reductio The latest amendments to the amended RFP introduce the 51% mandatory Ghanaian ownership – the ultimate legal and effective property of Ghanaian citizens. [19659003] It imposes express restrictions on the creation of different categories or clbades of shares in NewCo, and the requirement of this threshold of 51% must be maintained for the duration of the concession; default by the company would trigger the default buy-out option if this 51% threshold is not met.
According to the consortium, the The above arrangements significantly affect the consortium's ability to structure a viable solution. The consortium added that its financiers had warned that such restrictions would eventually affect the bankability of the concession.
In the letter on page 3, she added: "As part of the security package the restriction is again problematic, severely restricting the lenders' right of execution and having a negative impact on the bankability of the concession as a whole. "
[ad_2]
Source link
