Government suspends PDS agreement; says it won’t affect electricity distribution

Government suspends PDS agreement; says it won’t affect electricity distribution

- The government of Ghana has announced the suspension of the concession agreement with PDS

- The government said a full probe has been initiated and steps have been taken to ensure that “distribution, billing and payment services continue uninterrupted”

- Meanwhile, PR of the Energy Ministry says the government of Ghana was transparent with the Power Distribution Services (PDS) deal

Ghana has suspended the concession agreement it had with Power Distribution Services (PDS). The statement from the information ministry noted the Electricity Company of Ghana (ECG) will now be in full control of power distribution.

According to a release by the information ministry, the decision was following some revelations of fundamental errors and fraudulent acts.

Government wants to secure ECG’s assets that were handed to PDS as part of the concession agreement. 

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We have through deep intelligence detected that they have issues with those guarantees that were provided...they were not valid ” Mr Oppong Nkrumah said in the statement.

The state also revoked PDS’ distribution license and allow ECG to go back to work while government undertakes a full-scale enquiry.

PDS was the first private company to manage the affairs of ECG after Ghana won the Power Compact II that will inject some $900 million into power distribution.

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ECG’s struggle to make profit over many years prompted the need for a private investor for the sector.

It will be recalled that in April 2019, the NDC raised concerns with the government’s agreement with PDS but was not heeded too.

A former deputy minister for Energy and Petroleum John Abdulai Jinapor called on government to review the current deal paving way for Power Distribution Services (PDS) to take over ECG.

He noted that the deal was a bad one.

It is becoming clear that Ghanaians have been given yet another raw deal with the award of such a key state institution with assets worth 22 billion Cedis under this fishy and shady transaction,” Jinapor said in a statement.

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Source: Yen

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