Ghana: Electrical Contractors Hail Termination Of PDS Concession Agreement

Electrical Contractors Association in the West African nation, Ghana, have welcomed the decision by the Akufo-Addo-administration to terminate the concession agreement signed between the Electricity Company of Ghana (ECG) and Meralco-led Power Distribution Services (PDS) Ghana Limited.

In a press statement signed by the President of the Association Nana Addo Tetebo, it said: “We hereby write to show our appreciation to the government of Ghana for its swift, albeit meticulous, approach in terminating the concession agreement between the Electricity Company of Ghana and the Power Distribution Services Limited.

“We, as contractors, are very elated as our issues of non-payment of contracts are expected to be put to rest within the shortest possible time as calm has been restored by the government,” the statement said.

The Association pledged its full support to the government as ECG reassumes full operational and financial control of the electricity distribution business in the Southern Zone of Ghana.

“If ECG does things right in terms of improving efficiency and reducing distribution losses, the electricity business in Ghana needs no concession.

“We hope and pray that, with the current trend of events, the ECG will improve its ways and manage the electricity business in the interest of Ghanaians,” the statement concluded.

 Background

The government of Ghana terminated concession agreement Electricity Company of Ghana (ECG) signed with Power Distribution Services (PDS) Ghana Limited on October 18, 2019.

A letter dated 18th October, 2019 signed by Finance Minister Ken Ofori-Atta said: “Following consultations with Government, we wish to emphasize that Government remains strongly committed to the Compact and to private sector participation in the Electricity Company of Ghana.”

“Secondly, the facts detailed below clearly justify the discontinuance of the current concession which, it should once again be emphasized, 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,” the letter said.