The Electricity Company of Ghana (ECG) is back control of Ghana’s power distribution following government’s suspension of the concession agreement with the Power Distribution Services (PDS).
The Informational Ministry Tuesday said the decision was taken after some fundamental and material breaches were detected on the part of PDS.
A statement signed by sector Minister, Kojo Oppong Nkrumah, said some breaches in PDS’ obligation in the provision of Payment Securities were detected.
“The Government of Ghana, through the Ministry of Finance and the Electricity of Ghana, has suspended the concession agreement with the Power Distribution Services (PDS) Ghana Limited with immediate effect,” the statement said.
“The decision follows the detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which have been discovered upon further due diligence.
“The Demand Guarantees were key prerequisites for the lease of assets on 1st March, 2019 to secure the assets that were transferred to the concessionaire.”
The statement added that “government is conducting a full enquiry into the matter, and the outcome will inform the next course of action.”
Meanwhile, the government has assured that the suspension of PDS’ concession won’t affect the distribution of power in the country.
Read the Ministry of Information’s full statement on the matter below:
