The Ministry of Energy and Green Transition has announced that the Government of Ghana has taken note of the final award rendered by the London Court of International Arbitration (LCIA) in the dispute between Power Distribution Services (PDS) Ghana Limited and the Electricity Company of Ghana (ECG).
The Arbitral Tribunal has dismissed all claims sought by PDS, and importantly, found that the Demand Guarantees issued in respect of the transaction were “void ab initio” (invalid from the outset).
According to the Ministry, “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.”
The Government has expressed regret over the losses incurred as a result of the poor decisions, including the loss of approximately US$190 million in compact funding from the U.S. Millennium Challenge Corporation (MCC) in 2019. This loss also meant that Ghana missed a critical opportunity to implement key reforms within the Electricity Company of Ghana (ECG).
The Ministry has 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 Ministry stated.
The Government’s commitment to transparency and accountability is evident in its actions, and the outcome of this arbitration serves as a testament to the importance of prudent decision-making in the energy sector.
The Ministry’s next steps will focus on recovering any amounts due to ECG and the State, while also pushing forward with sustainable energy reforms.
Below is the press release;
Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of The Accra Daily Mail, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
