The Ministry of Energy and Green Transition has expressed satisfaction with the final ruling of the London Court of International Arbitration (LCIA) in the long-standing dispute between Power Distribution Services (PDS) Ghana Limited and the Electricity Company of Ghana (ECG).
In a statement signed by Richmond Rockson, Spokesperson and Head of Communication for the ministry, the government said it had taken note of the LCIA’s final award, which dismissed all claims brought forward by PDS against ECG.
According to the ministry, PDS had initiated arbitral proceedings against ECG, challenging the termination of the concession agreement between the two entities. However, the LCIA Tribunal, after a full hearing, dismissed all the claims and ruled that the Demand Guarantees issued for the transaction were void ab initio (invalid from the outset).
The Tribunal consequently affirmed that the Government of Ghana was within its rights to terminate the PDS concession agreement.
“The Government notes that this situation should never have arisen in the first place,” the statement read. “The poor decisions made during the selection and approval process of the concessionaire under the previous administration directly contributed to the current outcome.”
The ministry further pointed out that the controversy surrounding the PDS concession led to Ghana losing approximately US$190 million in compact funding from the U.S. Millennium Challenge Corporation (MCC) in 2019. This, it said, deprived the country of a vital opportunity to implement reforms within the ECG.
The Energy Ministry assured the public that it is taking all necessary legal and administrative steps to recover any funds owed to the state or ECG as a result of the arbitration process.
It also reaffirmed the government’s commitment to accountability, transparency, and sustainable energy reforms aligned with President John Dramani Mahama’s development agenda.
Source: www.kumasimail.com
