The Ministry of Energy has blamed what it describes as “poor decisions” taken under the former Akufo-Addo administration for Ghana’s loss of $190 million in Millennium Challenge Corporation (MCC) funding, following the collapse of the Power Distribution Services (PDS) concession deal.
In a statement responding to a recent international arbitration ruling that dismissed all claims brought by PDS against the Electricity Company of Ghana (ECG), the Ministry said the outcome vindicates government’s position that the 2019 concession was mishandled from the start.
The PDS concession, part of Ghana’s second MCC Compact, was designed to inject private capital and efficiency into ECG’s operations.
However, the deal was terminated just months after its launch, after government investigations found irregularities in the financial guarantees presented by PDS.
The termination not only ended hopes of reforming the state power distributor but also led to the suspension of $190 million in funding from the U.S.-based Millennium Challenge Corporation — a move that dealt a major blow to Ghana’s energy sector reform programme.
Reacting to the tribunal’s ruling, the Ministry’s spokesperson, Richmond Rockson, said the case serves as a cautionary tale about poor governance decisions in critical national sectors.
“The government has taken note of the tribunal’s decision in the PDS–ECG arbitration. This situation should never have arisen in the first place. The poor decisions made during the selection of the concessionaire, which led to the formation of Power Distribution Services (PDS) under the Akufo-Addo administration, brought us here,” he wrote on X (formerly Twitter).
Mr. Rockson added that the financial loss and reputational damage could have been avoided if due diligence had been properly done.
“As a result of those decisions, Ghana lost $190 million in compact funding from the U.S. Millennium Challenge Corporation (MCC) in 2019 and missed a critical opportunity to reform the Electricity Company of Ghana (ECG),” he said.
He assured that the government remains committed to pursuing any outstanding recoveries and ensuring accountability in the matter:
“The government assures the public that all necessary steps will be taken to recover every amount due to ECG and the Government of Ghana.”
The ruling by the London tribunal brings to a close a three-year legal dispute between PDS and ECG, reaffirming Ghana’s right to terminate the controversial concession.
Source: Starrfm.com.gh
