MiDA prepares for second bidders’ conference
The Millennium Development Authority (MiDA) will next month hold a second bidders’ conference for Shortlisted Applicants of the ECG PSP Concession, having released the three final components of the Request for Proposal (RfP) document.
From October 2 to 6, 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 with the Government of Ghana (GoG) to seek clarification on the RfP document.
The Bidders’ Conference
The second bidders’ conference is planned to give Shortlisted Applicants the opportunity to ask government 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 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, this 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 prior to the second bidders’ 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 deliberating 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.
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 NPP government’s responsibility, placed on them by Ghanaians, towards solving the power challenges in the country can be summarised in the mantra “keep the lights on… and make energy affordable.”
He said the country’s energy sector can no longer be run the way it has been run 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”, Mr. Agyarko said.
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 be reminded of that fact during their deliberations adding that their work at the retreat had huge implications for the millions of Ghanaians who would benefit from the Compact II Programme’s implementation.
MiDA expects to issue the final addendum to RfP to the Shortlisted Applicants on November 3. This would be after comments received from the Shortlisted Applicants during the second bidders’ conference or prior, have been reviewed, analysed and incorporated into the document.
The Shortlisted Applicants will have until January 5, 2018 to submit their bids for evaluation. Between these milestones, Government will constitute a Proposal Evaluation Panel and a Negotiation Panel between December 2017 and January 2018.
The selection and announcement of the winning bidder to manage, operate and invest in the electricity distribution business of the Electricity Company of Ghana (ECG) should be completed by March 2018. Financial close, the time at which all financing agreements on the Concession Transaction have been signed and all the required conditions precedent contained in them have been met, is expected to be in September 2018.