BREAKING: Gov’t Suspends Contract with PDS
The government through the Ministry of Finance and the Electricity Company of Ghana Ltd. has suspended the concession agreement with Power Distribution Services (PDS) Ghana Limited with immediate effect.
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.
PDS took over the management of the Electricity Company of Ghana on February 27 and have since been bedevilled by some challenges arising from power outages.
The PDS reported its first major challenge on March 12 when it announced that it was facing challenges upstream power supply to their Mallam Bulk Supply Point (BSP) and Graphic Road (BSP).
The challenges caused power outage within the Western and the Central parts of Accra.
On March 15, the Ghana Grid Company Limited (GRIDCo) advised the PDS to shed load at various Bulk Supply Points to ensure system stability in Ghana’s electricity distribution.