The African Development Bank, AfDB is to raise $800 million for the new owners of Electricity Company of Ghana ECG Meralco.
The deal would see African Development Bank and some financial firms including Standard Bank, South Africa to raise these funds to support the deal.
Details of the Agreement
The funds are expected to help the new consortium, Meralco with the transformation of ECG.
The Agreement was signed with A-Energy, the financing wing of the consortium that was selected by the government to manage ECG.
Afdb is likely to raise about $500 million, while the remaining would be raised by Standard Bank together with its partners.
Speaking to JoyBusiness in South Africa on the sidelines of the Africa Investment Forum, Vice President at the African Development Bank in Chair of Energy and Power and climate change, Amadu Hott says they are hoping to use the facility to support the transformation of the Electricity Company of Ghana adding that “this money is for working capital and investment into ECG and we are hopeful this project would succeed.”
Mr Hott noted that he does not think that they would struggle to raise all these funds on time for ECG, adding that we are motivated to support such projects because of its impact on the economy.
What is next for ECG and the new owners?
According to the founder and Chief Executive of Aenergy Ricardo Machado, this facility would indeed help them to fast-track the process and bring out the transformation that they promised government.
Meralco and ECG
The Millennium Development Authority (MiDA) earlier this year announced the selection of Meralco Consortium as the 'Preferred Bidder' to manage the Electricity Company of Ghana (ECG).
“Yes, but the point is that you still have to negotiate a contract with them. It is only after you have negotiated a contract that you can conclude that you have a winner. But for now, Meralco is the preferred bidder” Chief Executive Officer of MiDA, Martin Eson-Benjamin told JoyBusiness in an exclusive interview.
“Following an international competitive procurement process, the evaluation of the proposals received for the Management of, Operation of, and Investment in the Electricity Distribution Business of the Electricity Company of Ghana (ECG) has been completed.
The Meralco Consortium was determined to have the highest combined technical and financial score and has therefore been designated as the Preferred Bidder,” a statement signed by Pamela Djamson-Tettey Director, Communication and Outreach of MiDA said.
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