Ghana: ‘Dumsor’ Could Start Soon Due To PDS Deal Termination– Former Power Minister Predicts

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Hon. Emmanuel Armah Buah, former Minister of Power and Petroleum, Republic of Ghana

A former Minister of Power and Petroleum in the Republic of Ghana, Hon. Emmanuel Armah Kofi Buah is predicting of a possible power crisis in the West African country, as a result of government decision to terminate PDS deal.

“The NPP government has messed up the deal which was beautifully started by the NDC government,” he said.

“But the way things are being handled by the NPP government over this PDS deal will cause the country a great deal of mess if they do not obey and work things out properly with the authorities of the Millennium Challenge Corporation.”

He added that the country had already expended the 500 million dollars provided by the MCC for the power sector.

However, the Deputy Minister of Energy in charge of Power, William Owuraku Aidoo, has suggested that the controversial PDS deal has not been canceled.

Speaking on an Accra based Peace FM, the Deputy Minister who doubles as the Member of Parliament for Afigya Kwabre South constituency said, “it’s a letter of intent . . . you can’t just get up and cancel, you need to consult all the stakeholders.”

A letter dated 18 October 2019 signed by Finance Minister Ken Ofori-Atta indicated that the deal has been 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.”

According to the statement, “following consultations with Government, we wish to emphasize that the 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.”

 

 

 

 

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