Companies Runaway From ECG Takeover

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Reports have revealed that, companies have run away from the takeover and management of the state-owned Electricity Company of Ghana (ECG) under a private sector participation arrangement with only two bidders submitting a proposal.

As at Monday, when submission of request was closed, a Chinese company with a Ghana subsidiary BXC Ghana and Manila Electric Company (MERALCo) a Filipino company based in the Philippines, had submitted their bids.

A statement from the Millennium Development Authority (MiDA) copied the media, has confirmed the bids from the Asian companies.

French electricity conglomerate, EDF and French transnational company Veolia, together with their local partners CH Group, did not put in bids for the private participation.

Reports in the media are that the businesses had raised concern over the 51 percent local stake in the new entity.

Meanwhile, MiDA, says the evaluation of the bids is expected to be completed in April 2018.

BXC Ghana Limited (BXC), gave it profile as a company registered in the Republic of Ghana is a subsidiary of Xiaocheng Electronic Technology Stock Co. Ltd (300139 SHENZHEN STOCK EXCHANGE) which is in the business of manufacturing and deploying highly efficient prepayment metering systems and management of power supply across the world. BXC was established in 2010 in Ghana with a group of Chinese investors who have trained and used Ghanaians to implement major projects in Ghana.

BXC operates in the Power Sector of Ghana. It specializes in the electricity generation, and distribution services. In terms of power distribution, it has developed local expertise in network optimization and management, metering and revenue management and has performed this role at various levels with the Electricity Company of Ghana Limited (ECG). Having its parent company specialize in power management, manufacture of meters and its accessories, as well as technologies that protect or enhance metering, BXC is now poised to deliver world class ICT based prepayment metering solutions and power management to Ghana and the rest of the world.

BXC purchased and added CB Electric Ghana Limited to its portfolio to augment her vision to development of the power sector in Ghana. In terms of customer reach, BXC has a potential customer coverage of 650,000 customers (BXC – 450,000 and CB – 200,000 customers), making 21% of ECG customers. The company has so far installed fully functional 320,000 prepayment metering and associated systems on ECG’s distribution network. BXC has over 800 employees to meet the demand for implementation of all the power projects in Ghana.

As a major contractor in Ghana, BXC is implementing the Distribution system losses reduction and network improvement project to expand the ECG distribution grid and remove overloads, meter all customer consumption and perform an audit of electricity flow at all voltage levels to reduce electricity distribution system losses to a maximum of 10percent.

In this partnering with ECG, BXC is demarcating electricity district boundaries; and rehabilitating the electricity distribution networks in Accra West of ECG districts involving 450,000 households

BXC, has made a number of investment in the power pool, which includes, 30million United State Dollars investment in 20MW solar power project at Mangoase in the Central Region; 660MW investment thermal plant with VRA at the Aboadze enclave with an expected investment of 500million United State Dollars; and 50million dollars rural electrification project.

In Central, Western and Eastern Regions of Ghana, BXC is currently replacing the bare conductors in the heavy wooded forest with aerial bundled conductors (ABCs) to prevent outages caused by a bridge of two energized conductors. The sections completed have brought great reliability to ECG’s distribution networks in the beneficiary communities.

BXC parent company is one of the biggest suppliers of super scale Integrated Circuits for electric power, telecommunication, water supply, gas supply and other industries both in China and abroad. The Parent company, Xiaocheng Electronic Technology Stock Co., has a management and technical Partner, XHANSI Energy, managing and distributing Power in China to over a sixty (60) million customers.

In South Africa, BXC is in the business of supplying meters for electricity and water distribution in some provinces. Additionally, nearly 50percent of the Smart Grid is based on products of Xiaocheng Electronic Technology Stock Co., Ltd. BXC’s investment on this project stood at 1 billion rands.

The company specializes in the bulk power supply; research; monitoring and audit; design and application of Integrated Circuit (IC) products using cutting-edge technologies. The integrated circuits products include multifunction meter measuring IC products, multifunction PLC meters, multifunction meters, bi-directional infra-red based pulse detection IC products, and relay driver IC products; automatic metering systems, including reading, monitoring, and collecting subsystems; concentrators; smart meters, such as single and three phase, and GPRS meters. It also supplies PLCC modulation/demodulation chips, and concerned systems, as well as provides IC design and metering systems.

The Manila Electric Company, or Meralco, is the Philippines’ largest distributor of electrical power. The company holds the power distribution franchise for some 22 cities and 89 municipalities, including the capital city of Manila, as well as for the cities of San Juan, Las Piñas, Quezon, Malabon, Makati, Caloocan, Pasay, Mandaluyong, Paranaque, and Navotas. Meralco’s 25-year franchise for these markets, awarded in 2003, gives the company control of the energy distribution services for an area of more than 9.3 thousand square kilometers and a population of more than 19.7 million–one-fourth of the Philippines’ total population. The company boasts a coverage rate of more than 97 percent, the highest in the country. Each year, Meralco sells more than 23 million megawatt-hours (MWH), with residential and commercial sales each contributing roughly 35 percent, and industrial sales adding 30 percent. Formerly a power producer, Meralco purchases its power requirements primarily from government-owned National Power Corporation; since the beginning of the 2000s, however, the company has begun to purchase electricity from a number of newly established independent power producers, helping to lower its prices. Meralco also has started to diversify its operations in response to the deregulation of the Philippines power industry by extending into power generation, industrial construction and engineering, and other areas, including real estate development, e-commerce, and consultancy services. Meralco is led by Chairman and CEO Manuel M. Lopez, whose family, through direct and indirect holdings, retains control of some 25 percent of the company. The Lopez family, one of the country’s most prominent, also controls conglomerate Benpres Holdings and other businesses.

Electricity came to Manila in 1892 with the founding of La Electricista, which began providing electricity to residential customers. With the completion of a new power plant in 1895, La Electricista began providing street lighting service to the city as well. By the beginning of the 1900s, La Electricista boasted some 3,000 customers, as well as its streetlight business.

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