Gov’t scheming to bring back PDS-Minority

The Minority in Parliament is alleging that the government is plotting to re-instate the Power Distribution Services (PDS) to manage the distribution of electricity in the country.

According to the Minority, the government has planned to enter a weak defence in the suit filed against it by PDS.

The Minority’s spokesperson on Energy Adams Mutawakilu who made the allegation said this will make it easier for the company to be reinstated.

In an engagement with the media, the legislator said: “Recently, the Ministry of Information came out and said that PDS has taken the government to court. And if you read between the lines, you recognise the agenda they (NPP) have if they are to be voted for in December 7, 2020, general election. They have now restructured PDS, planned it and asked the company to take the government to court, so they put up a strong defence to take over ECG again. So it is clear that they still have an agenda to take back ECG; our strategic asset, so that family and friends will once again come and take over.”

PDS was in March 2019 contracted to distribute electricity to the southern part of the country, taking over the Electricity Company of Ghana.

It had its agreement terminated through a letter issued and signed by the Finance Minister Ken Ofori-Atta which said: “Following consultations with Government, we wish to emphasise that Government remains strongly committed to the Compact and to private sector participation in the Electricity Company of Ghana.

“We also wish to reiterate the position communicated to the CEO of the MCC by the President of Ghana during their meeting on the sidelines of the United Nations General Assembly in New York on September 23rd to the effect that, the current concession had to be terminated in view of the facts uncovered regarding the failure by PDS to satisfy conditions precedent under the relevant transaction documents AND, however, that every effort would be employed to ensure a suitable replacement within the relevant timelines in order to complete the Compact.

“The Government decision to terminate the PDS concession and find a replacement in a timely manner to successfully conclude the Compact is based on two key points: First of all, it is Government’s view that the meeting between the CEO of MCC and the President of Ghana 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. It is worth recalling that following this understanding Mr. Cairncross and President Akufo-Addo shook hands and committed to expeditiously putting the understandings into effect. Following the meeting, however, MCC sent an implementation plan, which in our opinion did not accurately reflect the outcome of the New York meeting.

“Secondly, the facts detailed below clearly justify the discontinuance of the current concession which, it should once again be emphasised, does not in any way diminish the Government of Ghana’s commitment to private sector participation in Ghana’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.”


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