The Ministry of Energy and Green Transition has welcomed the arbitration decision in the dispute between Power Distribution Services (PDS) and the Electricity Company of Ghana (ECG).
The Ministry it ahd taken note of the final award rendered by the London Court of International Arbitration (LCIA) in the matter between PDS Ghana Limited and the ECG.
PDS had commenced arbitral proceedings at the LCIA against ECG, seeking various claims arising from the termination of the concession agreement. After a full hearing, the Arbitral Tribunal, in its final award, dismissed all claims sought by PDS.
Importantly, the Tribunal further found that the Demand Guarantees issued in respect of the transaction were void ab initio (invalid from the outset) and consequently held that the Government of Ghana was entitled to terminate the concession agreement.
A statement issued by the Ministry on Thursday, November 6 said that “The Government notes that this situation should never have arisen in the first place. The 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, directly contributed to the current outcome.
“As a result of those decisions, Ghana lost approximately US$190 million in compact funding from the U.S. Millennium Challenge Corporation (MCC) in 2019 and missed a critical opportunity to implement key reforms within the Electricity Company of Ghana (ECG).”
The Ministry assured 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 reaffirms its commitment to accountability, transparency, and sustainable energy reforms consistent with His Excellency President John Dramani Mahama’s agenda,” the statement added.
