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ECG Concession: Court Dismisses Injunction Case Against MiDA

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An Accra High Court has dismissed an injunction case brought against the Millennium Development Authority (MiDA) by BXC Company Limited.

MiDA disqualified BXC Company Limited which was part of the companies bidding for the privatisation of the Electricity Company of Ghana(ECG).

BXC was praying the court to order MIDA to stop all forms of discussion and negotiations currently going on with the only remaining company in the ECG Privatization process, that is Meralco Consortium from the Philippines.

But the court, in a ruling today, dismissed the injunction case.

The court however granted an injunction to restrain MiDA from drawing on the bid bond.

Background

MiDA confirmed it was summoned to court by BXC Consortium over the latter’s disqualification from the bidding process to manage the ECG.

MIDA disqualified BXC Consortium and selected Meralco Consortium, a company led by Manila Electricity Company from the Philippines to manage the Electricity Company of Ghana (ECG).

Disqualification

A letter written by MiDA and addressed to BXC Company on April 12, 2018, said the company had been disqualified for failing to make its existing contractual relationship with ECG known in its initial proposals.

The letter accused BXC Ghana of conflict of interest on the basis of its relationship with ECG – as a result, the company’s financial proposal was not opened for evaluation and was returned to the company.

The Coordinator of the BXC consortium in the ECG takeover, Daniel Azu, however, insisted MiDA’s reasons for disqualification were completely flawed and baseless as evidence emerging suggests that it was done to favour Meralco Consortium.

BXC’s response

BXC in a letter dated April 13, 2018, and addressed to MIDA said: “it had not misled MiDA and had not engaged, and/or are not aware of any actual or potential conflict of interest in any way whatsoever and or howsoever. We state that we have always informed MIDA about our distribution contracts together with our previous pending contracts with ECG.”

“We add that by a letter dated 1st March 2018, before the submission of the bid, we informed you of all past and present contracts between BXC Consortium and ECG dating as far back as 2005.

Source: Citibusinessnews

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