Ghana’s Deputy Minister for Energy in-charge of power, Hon. William Owuraku Aidoo has said President Nana Akufo-Addo should be commended for taking a firm decision to terminate the concession agreement between the government and the Power Distribution Services (PDS) Ghana Limited.
The Akufo-Addo administration officially began processes to terminate the PDS concession agreement on Wednesday after announcing its intent earlier in the week.
Speaking on an Accra-based Citi FM, Mr. Aidoo said although the termination will come with its own disadvantages, the government had to take the decision in the interest of Ghanaians.
“The President and his government decided that as far as we as a nation is concerned, the demand guarantee which is the condition precedent for this compact to be legitimate was not in place and I think the President should be commended for standing its ground.”
“We have been advised and have taken the advice of our advisers to be true…As far as we are concerned, the demand guarantee was not in place so we have taken a decision to safeguard the 3 billion dollars of our assets as opposed to the 190 million dollars predicated on successful completion of the concession. It is a decision that we have taken and there is no major fight between us [government and US].”
ECG takes over power distribution
This latest development has officially paved the way for the Electricity Company of Ghana (ECG) to assume full control of the electricity distribution business in the southern part of Ghana.
In a statement, the ECG said;
“The Electricity Company of Ghana Limited (ECG) has today, 23rd October, 2019 terminated Private Sector Participation Transaction Agreements with Power Distribution Services Ghana Limited (PDS). ECG has therefore assumed full operational and financial control of the electricity distribution business in the Southern Zone of Ghana with immediate effect. Consequently, all activities which were hitherto undertaken by PDS have reverted to ECG”.
