Explainer: Why government terminated PDS deal

Explainer: Why government terminated PDS deal

- Government has formally ended the power concession deal with power distributors PDS

- The concession agreement was first suspended on July 30, 2019 by the government due to what it called “fundamental and material breaches”

- Government has, however, assured it will find a suitable replacement for PDS as soon as practicable

- Our Manifesto: This is what YEN.com.gh believes in

The government of Ghana has finally cancelled the controversial Power Distribution Service's (PDS) concession deal.

The GoG of first suspended the agreement with PDS following investigations and suspicion of fraud in the arrangement on July 30, 2019.

The agreement was one that required that the private company, PDS, to manage the distribution of power in Ghana.

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According to government, the decision to terminate the PDS concession agreement was based on two key reasons.

"First of all, it is government’s view that the meeting between the CEO of Millennium Challenge Corporation (MCC )and President Akufo-Addo produced an understanding that the existing concession would be discontinued and a concession restoration and restructuring plan executed within existing timelines and in any event before December 31, 2019."

Government further explained in detail that a letter from Al Koot to ECG indicated that it was not authorized to undertake the trade risks as it had done.

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Meanwhile, Finance Minister, Ken Ofori Atta says government will make every effort to ensure that a suitable replacement for PDS is found within the relevant timelines.

President Akufo-Addo's government has also noted that it will ensure private sector participation in the country’s energy sector.

“Indeed, Government intends to see this PSP through in a manner that respects due process and fidelity to the relevant transaction documents and underlying Compact,” a letter signed by the finace minister stated.

YEN.com.gh earlier reported that Slyvia Abena Peprah is a deaf and blind student who has graduated with First Class honours from the University of Education winneba (UEW).

The 30-year-old lady, pursued a two-year diploma programme in Community-Based Rehabilitation and Disability Studies.

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Source: YEN.com.gh

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