The Manila Electric Co. (Meralco) is looking to invest in a power distribution business in Ghana amid its overseas expansion.
The Millennium Development Authority (MiDA) has chosen Meralco as the preferred bidder to manage, operate, and invest in the electricity distribution business of the Electric Company if Ghana (ECG).
According to Meralco first vice president and legal corporate governance head William Pamintuan said that the company will negotiate with MiDA for the concession agreement.
Meralco’s bid was for equity ownership and management of the concession company to take over the ECG, company senior vice president Alfredo Panlilio said.
The ECG Private Sector Participation (ECG PSP) in one of five activities under the ECG Financial and Operational Turnaround Project of the Ghana Power Compact Program.
Under the said activity, MiDa is auctioning off a 20 to 30-year concession to provide additional investment urgently required to improve electric infrastructure, innovation, and technology to enhance operational efficiency and efficient capital expenditure to improve service delivery.
After the concession, all assets will be transferred back to ECG.
MiDA said that negotiations will be discussed to finalize all the agreements related to the implementation of the ECG PSP transaction.
The company is looking to complete all processes, like 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.