President John Dramani Mahama has mentioned that the Power Distribution Services (PDS) concession association didn’t fail as it was once essentially faulty however fairly because of mismanagement and the pursuit of private pursuits that undermined its financial backing.

Addressing a meeting on the sod-cutting rite for the Multi-purpose Solar Energy Project on the Dawa Industrial Park in Agotor on Thursday, November 6, the President defined that the PDS initiative was once designed to convey private-sector potency into the rustic’s electrical energy distribution device.

However, he famous that the undertaking collapsed because of deficient oversight and the mishandling of its execution.

“I do know that there was once an try to contain the non-public field in energy software and distribution. We all consider the instance with PDS. PDS was once no longer a nasty factor; it was once simply treated wrongly, and many of us had non-public pursuits in it. That’s why it failed. But there’s something to be mentioned for injecting private-sector potency into public utilities,” Mr. Mahama mentioned.

His remarks observe renewed public discourse on Ghana’s energy field reforms after the London Court of International Arbitration (LCIA) disregarded all claims filed through Power Distribution Services (PDS) towards the Electricity Company of Ghana (ECG) in regards to the cancellation in their concession deal.

The PDS settlement, initiated in 2019 below the Millennium Challenge Compact (MCC) between the Government of Ghana and the Millennium Challenge Corporation (MCC) of the United States, was once designed to spice up operational potency and repair supply inside ECG.

As a part of the 20-year concession, PDS was once to supervise ECG’s property and day-to-day operations to toughen national electrical energy distribution.

However, the federal government suspended and later cancelled the deal after uncovering that the cost promises issued through PDS via Al Koot Insurance and Reinsurance Company of Qatar had been fraudulent.

Subsequent investigations showed that the promises had no longer been accepted through Al Koot, a discovering upheld through the Qatari Court of Cassation.

The discovery invalidated the paperwork, that have been key to PDS’s monetary credibility and the total settlement.

In reaction, PDS sought arbitration in London, claiming wrongful termination and significant repayment exceeding US$390 million.

ECG, represented through Omnia Strategy LLP below the growth of Cherie Blair KC, maintained that PDS’s failure to authenticate the promises amounted to a significant contractual violation.

After intensive hearings, the tribunal dominated in favour of ECG, concluding that the fraudulent promises undermined all the concession and justified its cancellation.

Meanwhile, the Ministry of Energy and Green Transition has pledged to get better all budget and property owed to ECG.

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