ECG Concession: BXC sues MiDA over disqualification

One of the Concessionaires that were bidding to manage the Electricity Company of Ghana (ECG), under the Power Compact II agreement, BXC Ghana has sued the Millennium Development Authority(MiDA) over what it calls unfair disqualification in the bidding process.

The Millennium Development Authority (MiDA), last week selected Meralco Consortium, to manage the Electricity Company of Ghana [ECG], under the power compact Two agreement.

Meralco Consortium is led by the Manila Electricity Company from the Philippines.

A statement from MiDA said Meralco Consortium is known to have the highest combined technical and financial score, and has therefore been designated for the job as the preferred bidder by MiDA.

Addressing a Press conference on Monday, Coordinator of the BXC Consortium in the ECG takeover, Daniel Azu said MiDA must be compelled to give explanations for BXC’s disqualification and wants the courts to look into the merits of the decision by MiDA.

BXC Company Ghana Ltd

BXC Ghana Limited (BXC), a company registered in the Republic of Ghana, is a subsidiary of Xiaocheng Electronic Technology Stock Co. Ltd, 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 by a group of Chinese investors, who have trained and used Ghanaians to implement major projects in Ghana.

In September 2011, BXC and the ECG signed an agreement for 10 years, where BXC shall engage in System Loss Reduction in the Teshie and Bortianor areas; the commercial aim of which was to share proportional losses recovered by the project while technically improving the infrastructure and deploying more modern systems of power distribution management.

Aiming to reduce the losses, BXC co-operated with ECG quite well. Currently, the outcome of the project has been very good. However, both BXC and ECG agree that there are challenges which demand greater BXC and ECG co-ordination in order to minimise the losses and maximise the proceeds.