Hon Boakye Agyarko, Energy Minister
The Millennium Development Authority (MiDA) will next month hold a second bidders’ conference for shortlisted applicants of the ECG PSP Concession after releasing the three final components of the Request for Proposal (RfP) document- Rate Setting Guidelines, Sale License and the Distribution License- to them.
From 2-6 October, 2017, Engie Energie Services S.A (France), Manila Electric Company (Philippines) and three consortia namely CH Group (Ghana)/ EDF SA/LMI Holdings/Veolia SA, BXC Company Ghana Ltd/ Xiaocheng Technology Stock Company Limited (China)/Shaanxi Regional Electric Power Group Company Limited (China), and The Tata Power Company Limited (India)/CDC Group Plc (UK) will meet the Government of Ghana (GoG) to seek clarification on the RfP document.
Bidders’ conference
The second bidders’ conference is planned to give shortlisted applicants the opportunity to ask GoG’ parties questions about the terms and conditions of the Concession Transaction.
The applicants, at their respective meetings with government during the conference, will also have the chance to suggest ways in which the RfP documents can be made clearer on how regulatory decisions will be made.
Unlike the first bidders conference, which provided the Government of Ghana the opportunity to reassure shortlisted applicants of its commitment to the Concession Transaction in ECG and was opened to a wider number of participants, the second conference will only involve the bidders and various GoG parties such as Ministry of Energy, Ministry of Justice and Attorney General’s Department, Ministry of Finance, Public Utilities Regulatory Commission (PURC), Energy Commission (EC), ECG and MiDA.
Activities preceding the conference
The Rate Setting Guidelines, Sale License and the Distribution License, which are all crucial components of the RfP, were released to each applicant on August 17 after stakeholders had reviewed and discussed the three documents at a retreat held in Abokobi from July 31 to August 4.
Officials from the Ministry of Energy, Ministry of Justice and Attorney General’s Department, Ministry of Finance, Public Utilities Regulatory Commission (PURC), Energy Commission (EC), ECG, and MiDA, were in Abokobi over five days to deliberate on the documents.
Other participants included the International Finance Corporation (IFC) who are Transaction Advisors for the ECG PSP Activity and AT Kearny- Consultants advising ECG on the Concession Transaction.
The Rate Setting Guidelines sets out the principles, methodology and the process to be applied by the PURC in determining and approving tariffs for the proposed ECG Concession.
The Sale License and Distribution License, both granted by the Energy Commission, set out the terms and conditions under which the concessionaire would retail and distribute electricity in the country.
Government commitment
Energy Minister, Boakye Agyarko, Special Guest at the closing ceremony of the retreat, emphasized government’s commitment to the Compact II Programme.
He explained that the country’s energy sector can no longer be managed in the same way and encouraged all stakeholders to embrace the reforms envisaged to transform the sector.
“For us, we have crossed the Rubicon, there should be no turning back because our people deserve the best that we can deliver,” Hon Agyarko said.
Charge
Earlier Vice President Dr Mahamudu Bawumia at the opening of the retreat, charged the stakeholders to ensure that the documents were completed on time for submission to the bidders.
He said government could not afford to let the critical timelines to complete the PSP process slip any further and therefore urged the stakeholders to always keep in mind that their work at the retreat would have huge impact on millions of Ghanaians who would benefit from the Compact II Programme’s implementation.