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Meralco To Inject US$580 million Into ECG Operations

The Energy Minister, Boakye Agyarko, on Tuesday laid before Parliament a paper on a concession agreement to allow a consortium of investors to privately invest in the Electricity Company of Ghana (ECG).

July 11, 2018

A white Paper has been referred to the Committee on Mines and Energy in Parliament for consideration and report to the House to enable Meralco, a power company from the Philippines to inject US$580 million into Electricity Company of Ghana (ECG) operations.

The United States also making available US$498m to complement the Meralco’s investment and would lead a consortium in managing ECG for 20 years beginning 2019.

The Energy Minister, Boakye Agyarko, on Tuesday laid before Parliament a paper on a concession agreement to allow a consortium of investors to privately invest in the Electricity Company of Ghana (ECG).

The agreement has already been approved by Cabinet and it is expected to be ratified by the House before it rises at the end of the month.

Mr Agyarko gave an assurance that ECG workers were going to keep their jobs.

The ECG would not be scrapped, but sublet power distribution to a company to be called Power Distribution Service Limited.  “ECG will still be ECG,” the Minister added.

The Minister praised the concession agreement and said, if such a deal had been made when Ghana began her energy sector reforms, the nation would not have gone through prolonged period of power shortages.

The Millennium Development Authority (MiDA) in April 2018 announced that Meralco Consortium, a 115 year old privately owned company incorporated in the Philippines has been selected to manage the Electricity Company of Ghana [ECG], under the power compact two agreements.

Meralco Consortium electricity distribution network covers a third of the Philippines and serves a customer population (Accounts) in excess of six (6) million.

Meralco Consortium is known to have the highest combined technical and financial score, and has therefore been designated as the Preferred Bidder.

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