ECG Deal: Court Throws Out BXC Injunction Application

An Accra High Court presided over by Justice Jerome Noble Nkrumah has thrown out an application for an interlocutory injunction filed by BXC company limited seeking to halt Millennium Development Authority’s (MiDA) ECG concession deal.

According to the court, government stands to lose a lot, if the application is granted hence the refusal.

BXC Company Limited, a Chinese company dragged MiDA to court for unlawful disqualification from bidding for contract to manage the Electricity Company of Ghana. The company among others was seeking damages of $4million being the cost it incurred on preparing and submitting its bid.

On April 20, 2018, MiDA announced that it has selected Meralco Consortium to manage ECG under the compact two power agreement.

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

In a statement, MiDA said Meralco Consortium is known to have the highest combined technical and financial score, and has therefore been designated as the Preferred Bidder.

Per the compact, the Millennium Challenge Corporation (MCC) is expected to inject about $418million into ECG, while Meralco will invest about $500million.

BXC and Meralco Consortium were the two final bidders after other bidders pulled out of the bidding process.

Source: ClassFMonline