In a press release dated 23rd October, 2019 and issued by their Public, Relations and Communications Division, the Electricity Company of Ghana has terminated their Private Sector Participation Transaction Agreement between the Electricity Company of Ghana (ECG) and the Power Distribution Services (PDS).
By this letter, ECG is taking full operational and financial control of electricity distribution business in the Southern Zone of Ghana with immediate effect. All assets which are in the name of or branded as PDS will automatically be reverted back to ECG.
This move has become necessary after irregularities in the operations of Power Distribution Service were discovered. It will be recalled that Power Distribution Services, Ltd (PDS) assumed operation and management of the staff and assets of the Electricity Company of Ghana (ECG) from March 1, 2019 under a 20-year concession agreement.
The agreement comprised two tranches of funding: $308 million made available after the start of the current Compact, and a second tranche of $190 million, which was available upon a successfully executed concession agreement.
READ ALSO: The status of French in Ghana
However, a forensic audit conducted by the Millennium Challenge Corporation (MCC) and Government of Ghana into the issuance of Demand Guarantees for the Concession Transaction revealed that the Payment Security for the Transaction was invalid.
See the Press Release below…