The Ministry of Energy and Green Transition has announced that steps are being taken to recover any amounts owed to the Electricity Company of Ghana (ECG) and the State following the resolution of a dispute with Power Distribution Services (PDS) Ghana Limited.
The dispute, which was arbitrated at the London Court of International Arbitration (LCIA), arose after the Government of Ghana terminated the PDS concession, part of the country’s second Millennium Challenge Corporation (MCC) Compact.
The LCIA dismissed all claims brought by PDS against ECG and found that the Demand Guarantees issued in respect of the transaction were void from the outset.
Speaking on the matter in a statement on Thursday, November 06, the Ministry stressed the government’s ongoing efforts to safeguard the interests of the State and ECG.
“The Ministry assures the public that all necessary legal and administrative steps are being taken to recover any amounts due to ECG and the State as a result of this process.”
The Ministry explained that the situation stemmed from “poor decisions made during the selection and approval process of the concessionaire, which led to the formation of Power Distribution Services (PDS) under the previous administration” and resulted in Ghana losing approximately US$190 million in funding from the U.S. Millennium Challenge Corporation in 2019.
The Ministry emphasized that recovering any amounts owed is a priority to restore resources lost due to the failed concession.
“The Ministry reaffirms its commitment to accountability, transparency, and sustainable energy reforms consistent with His Excellency President John Dramani Mahama’s agenda,” the statement added.
Find below the statement
