Ghana selects consulting and law firms for sale of thermal assets

The Ghanaian government has selected financial advisors Fieldstone and PwC Corporate Finance to lead the sale of thermal assets worth up to $2 billion. Boulders Advisors and Mott MacDonald have been appointed as co-managers of the sale, with local law firm Bentsi-Enchill, Letsa & Ankomah named as legal advisor by the programme team tasked with the divestment.

The Volta River Authority (VRA) is a public sector power utility owned by the government of Ghana. The installed capacity of the VRA amounts to 2,456 Megawatts (MW), of which 1325 MW of power is generated through thermal plants. The remainder is generated through hydroelectric channels, except 2.5 MW, which is generated using solar plants.

The power sector in Ghana is currently struggling with substantial debt, which is further compounded by the fact that the VRA’s thermal units currently operate at only 50-65% of their capacity. As stated by the chair of the VRA, Kweku Awotwi, “management of the hydro assets is world class, but, for whatever reason, we’ve not been able to replicate that standard for the thermal assets.”

These units generate substantial losses for the power sector, as a result of which the government made a decision earlier this year to partner with private organisations through the sale of shares in the firm. The sale was stated to be part of efforts to restructure the energy sector of the country. 

Now, the government has decided that it will sell thermal assets cumulatively valued at up to $2 billion. In order to assist with this sale, the government has turned to the consulting industry, making the decision to employ the services of Big Four professional services firm PwC, as well as financial consulting firm Fieldstone.

In addition, consulting firms Boulders Advisors and Mott Macdonald will act as co-managers of the sale, while Accra-based legal firm Bentsi-Enchill, Lentsa & Ankomah will advise on the legal aspects of the sale.

Fieldstone is a financial advisory firm, specialising in the energy and infrastructure sectors, with further special emphasis on power. Since its founding in 1990, the firm has grown to acquire international stature. PwC, meanwhile, is one of the world’s top four accounting and advisory firms, and will deploy its corporate finance arm to assist with the deal.

As for the co-managers, Boulders Advisors is a specialised consulting firm based in Accra, which offers services in a range of fields, including mergers & acquisitions, operations management, corporate finance, and debt restructuring. Mott Macdonald, on the other hand, is an engineering consultancy based in the UK, and provides specialised services to the power sector among others, in 50 countries.

On the legal side of things, Bentsi-Enchill, Letsa & Ankomah is an Accra-based law firm, which provides legal services to firms across Ghana, spanning a wide range of sectors, including business and industry, construction, infrastructure and transport, energy and natural resources, and a number of other service areas.